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GM Avoids Shutdown, Reaches Agreement with Bankrupt Supplier
General Motors (GM) and Clark-Cutler-McDermott, a Massachusetts-based supplier, reached an agreement in court in Worcester, Mass. that allows GM to continue its profitable business in North America.
McDermott filed for Chapter 11 bankruptcy protection, alleging that the automaker’s price cuts resulted in $30,000 a day losses for the supplier. Since shutting down GM would cost the economy millions a day, the judge ruled that GM could claim the tooling that they already owned.
The dispute will also cause the governments in Massachusetts and Georgia, where C-C-M has factories, to lose money. GM was represented by Andrew Troop, whereas C-C-M’s attorney is Charles Dale.
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