GM seeks option to take tools from Plastech

DETROIT, March 12 (Reuters) - General Motors Corp GM.N has asked the U.S. Bankruptcy Court for authority to recover tools from bankrupt Plastech Engineered Products Inc should the supplier fail to deliver parts to the largest U.S. automaker.

GM said in court papers filed on Tuesday that it remained committed to working toward a reorganization of Plastech, but "simple common sense" required it to prepare for alternatives.

"Any other course would constitute reckless endangerment of GM's production lines and those that rely on them," it said in papers filed with the bankruptcy court in Detroit.

A representative of Plastech could not be reached immediately for comment.

The request from GM, among Plastech's top customers, came as the auto parts supplier sought the right to borrow an additional $14 million to maintain operations through April 2.

The move marked the latest strain between Dearborn, Michigan-based Plastech and its automotive customers, which include Chrysler LLC and Johnson Controls Inc.(JCI.N)

Chrysler had sought immediate possession of tools used to produce parts for Chrysler vehicles in January, which sparked the bankruptcy filing by Plastech to protect its interests.

A bankruptcy judge denied Chrysler's request to seize the tools and shift its business from Plastech after a hearing in February, in part because it would have dealt Plastech a "devastating" blow in the early days of the reorganization.

Plastech had sought and received additional payments from its customers in February 2007 and again in January to support its operations, but Chrysler balked at additional accommodations and instead sought to seize the tools.

GM provided Plastech with $11.5 million in February 2007 and agreed to a second second accommodation in January, before Plastech filed for bankruptcy. It called the uncertainties surrounding Plastech "self-evident."

Plastech on Tuesday sought court authority to borrow up to an additional $14 million "to avoid immediate and irreparable harm" and carry through to April 2 because of continuing liquidity shortfalls.

The company may borrow up to $35.1 million under a post-bankruptcy borrowing program that expires on Friday and has been unable to complete long-term debtor-in-possession financing. It wants the ability to borrow up to $49.1 million. (Reporting by David Bailey and Karey Wutkowski; editing by Carol Bishopric)