DETROIT -- Tower Automotive Inc. said last week that it will pay about $35 million to cover future benefits costs for retired salaried employees and workers at its closed Milwaukee plant.
Tower said it will make two payments totaling $5 million to a fund to cover future benefits costs for approximately 200 salaried retirees and their dependents.
In a separate agreement with its Milwaukee workers, Tower said it will contribute $30 million in equity in the reorganized company when it emerges from reorganization, possibly this summer, to fund benefits. The deal would cover 4,600 workers represented by seven unions.
The Novi, Mich., supplier filed for Chapter 11 reorganization in February 2005.