Big news could be devastating for employees of General Motors Company’s production plant in Phoenix, Arizona. Just a few days ago, General Motors Company was met with the startling revelation that one of their key suppliers, Clark-Cutler-McDermott Company, filed for bankruptcy in Phoenix. A contract dispute, said General Motors Company, plus the company’s bankruptcy lawyer’s in Phoenix move to file for bankruptcy may force the automotive company to close nearly all of their United States assembly factories, including the plants in Phoenix.
General Motors, which is based in Detroit, Michigan, depends on Clark-Cutler-McDermott Company for over one hundred and seventy five different insulation and interior material parts for their vehicles. Should this company file for bankruptcy successfully, General Motors could lose parts that are used in almost every car they manufacture in the country.
Clark-Cutler-McDermott Company ceased production of parts for General Motors earlier in July and laid off all employees. Clark-Cutler-McDermott Company had laid off workers earlier this year until General Motors could receive a restraining order against the company, which was granted. Now, that order has expired and Clark-Cutler-McDermott Company may be shutting down for good.
Production for large companies such as General Motors is a very sensitive process. Should supplies cease to be produced for their cars for even a 24 hour period, all North American plants could be closed for good. This was also said in General Motors own court documents, which claimed, “A continued disruption in the supply of component parts will also cause a catastrophic disruption in the supply chain and the operations of countless GM suppliers, dealers, customers, and other stakeholders.”
Since vehicle brands do not have products and parts on hand in order to save production factory space and must rely on immediate deliveries, even the slightest issue with suppliers could be dangerous for vehicle brands. It is even more dangerous that General Motors Company relies solely on one single supplier. General Motors Company can’t work with another supplier company either, since no other companies produce the correct parts for General Motors vehicles.
An upcoming court hearing has been scheduled to deal with requests from both General Motors Company and Clark-Cutler-McDermott Company.
Bankruptcy is a general term that refers to the federal court procedure of eliminating debt for a business or person. Bankruptcy is often filed when the amount of debt an entity has greatly outweighs their assets and income, making the debt nearly impossible to pay back. The entity in question must prove to a court of law that they are entitled to a bankruptcy. Should the bankruptcy hearing be successful, the entity’s debts, in full or partially, can be completely wiped away.
A bankruptcy lawyer is usually involved in the entity’s bankruptcy filing for several reasons. The biggest reason is that because all assets and incomes must be accounted for, it is extremely easy to make a mistake. Should you file for bankruptcy with fraudulent information, you could face serious fraud charges. A bankruptcy lawyer can help you go through your assets and accurately file for bankruptcy.
This is no simple magic wave of the wand, though. Filing for bankruptcy puts a stamp on your credit score that can remain there for ten years or more. The ability to get a credit score based loan for anything may be impossible because of your bankruptcy filing. Businesses usually dissolve and must be sold or closed down. This is why Clark-Cutler-McDermott Company’s file for bankruptcy could mean the end of General Motors Company. Should Clark-Cutler-McDermott Company cease production, General Motors Company will have no other means of manufacturing their vehicles with specific parts made by the supply company.
I want to file for bankruptcy, but I do not know if I should. Where can I find a bankruptcy lawyer in Phoenix, Arizona?
My AZ Lawyers, PLLC can help. Not only do we handle bankruptcy law, but we also have attorneys with niche expertise in criminal defense, divorce, and DUI cases. You should always look for a bankruptcy lawyer that has a good track record of successful bankruptcy cases. Not only that, but you should never handle your bankruptcy case alone. Small details can be missed and could mean big trouble for you in the future. Give My AZ Lawyers, PLLC a call today to learn more about how we can help you.
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