DETROIT -- Furukawa Electric North America accidentally received a $2.8 million payment from Delphi Corp. for parts it delivered before Delphi's Chapter 11 bankruptcy filing.
Now Furukawa's Automotive Product Division wants to keep the money.
The problem arose when Delphi twice paid Furukawa for the same invoices.
The parts went to Delphi Saginaw, according to a Furukawa court filing in Delphi's case in U.S. Bankruptcy Court in New York.
But Furukawa, of Plymouth, Mich., is asking the court if it can keep the money. That's because Delphi owed the company about $3.9 million for parts delivered to Delphi before the company sought bankruptcy protection on Oct. 8.
That debt was frozen by the court. It became unavailable to Furukawa after Delphi put its U.S. operations in bankruptcy.
According to an e-mailed statement from Delphi, suppliers like Furukawa that want to keep such payments must either make informal pre-approved arrangements or must file motions with the bankruptcy court.
"This motion is a normal part of the reconciliation process that takes place with our suppliers," the company statement said.
Furukawa makes steering roll connectors, relay boxes, sensors, terminals and other electronic parts.
Furukawa expects the court to hear its motion in January, said Michael McElwee, a lawyer with Varnum, Riddering, Schmidt & Howlett LLP, of Grand Rapids, Mich.
You may e-mail Dave Barkholz at [email protected]