DETROIT -- The automakers that agreed to fund Collins & Aikman Corp. for at least 90 days during its bankruptcy protection case were shortchanging the supplier a week after the agreement, according to court documents.
That charge is fueling concern from some creditors that the automakers intend to keep Collins & Aikman afloat just long enough to find other suppliers to do the work for their vehicles.
Collins & Aikman of Troy, Mich., supplies plastics, instrument panels, fabrics and acoustic components. It has parts on 90 percent of the cars made in North America.
On July 8, U.S. Bankruptcy Judge Steven Rhodes gave preliminary approval to a plan for six automakers to provide $304 million in debtor-in-possession financing, price relief and capital costs for 90 days.
But a week later, Collins & Aikman General Counsel Jay Knollsent a letter to those automakers complaining about a $1.2 million shortfall in funding between July 11 and July 14. The letter was sent to the Chrysler group, Ford Motor Co., General Motors, Honda of America Manufacturing Inc., Nissan North America Inc. and Toyota Motor Manufacturing North America Inc.
David Youngman, director of corporate communications for Collins & Aikman, said the issue was resolved quickly and no longer is a concern.