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.
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