A company turnaround specialist is a leading candidate to acquire the remains of a failed General Motors spinoff.
A principal of turnaround firm BBK Ltd. has asked officials of Canadian Auto Workers Union Local 222 for concessions in return for keeping open a former GM parts plant in Oshawa, Ontario. Terms were not disclosed.
CAW spokesman Al Loyst said the fate of the plant and nearly 1,300 workers at Peregrine Inc. hinges on the outcome of the CAW talks with the prospective buyer.
'Without an agreement, the future of the plant is not extremely bright,' he said.
Loyst said the winning bidder could be chosen soon. In addition to BBK Ltd., prospective bidders include Venture Industries Corp. and Mayflower Vehicle Systems Inc., according to Loyst.
The Oshawa plant was one of four parts plants that GM sold in 1996 to a New York investment company that created Peregrine Inc. of Southfield, Mich.
When Peregrine faltered in April 1998, it was sold to Jay Alix of Southfield, a turnaround specialist.
Two of the plants have been sold and a third has been closed.
The involvement of B.N. Bahadur, a principal in BBK, based in Southfield, was not a surprise.
GM often turns to his firm to assist with troubled GM suppliers. BBK was ranked as one of GM's top suppliers last year.
Last month, Vehicle Lighting Inc., a company created by Bahadur, was named the expected buyer of the money-losing Guide Corp.
Guide, with annual sales of $600 million, is the sole source for headlamps and taillamps used in 75 percent of the GM vehicles built in North America. It was created from the sale of the former Delphi Lighting.
The sole Peregrine plant presents challenges to a new owner. It produces an odd mix of bumper fascia, window regulators, valve covers and oil pans, almost exclusively for GM.
Its sales were about $450 million last year, but the union says the plant suffers from excess capacity and loses money.