DETROIT (Reuters) - Bankrupt auto parts supplier Cadence Innovation has sued General Motors Corp (GM.N), saying the automaker has failed to pay $4.9 million due for parts, labor and equipment.
Cadence Innovation LLC said in court documents filed on Thursday that GM’s failure to pay would damage Cadence’s plan to wind down and liquidate its assets.
The Troy, Michigan-based supplier filed the claim with the U.S. Bankruptcy Court in Delaware.
GM was not immediately available for comment.
Cadence, which filed for Chapter 11 bankruptcy protection in August, said in December that an orderly liquidation was in the best interests of its estate.
“GM’s breach of contract will result in substantial harm to Cadence’s bankruptcy estate, which is dependent on the funds that GM must pay to Cadence to confirm a plan in its bankruptcy case,” Cadence said in the filing.
Under Cadence’s agreement with GM, approved by the bankruptcy court in October, GM is required to pay Cadence on an expedited basis for parts and services provided since Cadence’s bankruptcy filing.
Cadence, which employed about 1,500 people and had five manufacturing facilities in Michigan and Indiana prior to its bankruptcy, had GM and Chrysler among its major customers.
Reporting by Soyoung Kim; editing by John Wallace
