Tower Automotive Inc. has reached an agreement with its union that will allow the troubled automotive-parts company to close its Kendallville, Ind., factory by June.
In documents filed with the U.S. Bankruptcy Court in Manhattan on Thursday, the Novi-based company said it had achieved a "favorable outcome" after several months of negotiations with the United Auto Workers.
The wind-down of its plant will cost $19.6 million, Tower said in a filing with the Securities and Exchange Commission in late 2006. Employee-related costs will total $1.3 million.
Tower is one of a growing number of auto-parts companies that have tumbled into bankruptcy proceedings amid production cutbacks by the biggest U.S. auto manufacturers.
All Rights Reserved. Do not reproduce, copy and use the editorial content without permission. Contact us: khoahocxaydung.info.
Anytime and anywhere to know the dynamics of China's auto industry