By Ryan Beene, Automotive News
Detroit, Michigan - Johnson Controls Inc. is vying to buy the interiors and under-the-hood business units of Plastech Engineered Products Inc., now in Chapter 11 bankruptcy protection.
Johnson Controls and some of Plastech's lenders have presented a proposal to Plastech to buy the business units. Johnson Controls and the creditors would form a company to act as the buyer, according to documents filed April 1 in US Bankruptcy Court in Detroit. The proposal and a related terms sheet were not filed, but were referenced in another document.
The documents did not disclose financial terms of the deal or the structure or operations of the new company.
Lawyers representing Johnson Controls and Plastech did not respond to e-mails from Automotive News seeking comment.
Whether the acquisition will occur is unclear. Johnson Controls has indicated that it will pull the proposal if Plastech sues Johnson Controls over supply contracts for plastic components. On 10 April, lawyers representing Plastech, Johnson Controls and the lenders are scheduled to meet to discuss possible litigation over supply contracts between Johnson Controls and Plastech.
This week, the court approved a motion to allow Plastech's customers - Ford Motor Co., General Motors, Chrysler LLC and Johnson Controls - to finance Plastech's bankruptcy from 30 April through August.