DETROIT—A federal bankruptcy judge has approved financing that allows struggling auto parts maker Plastech Engineered Products Inc. to keep operating through Aug. 31.
Judge Phillip Shefferly in Detroit signed the order Thursday allowing Plastech to accept loans from its major customers, Chrysler LLC, General Motors Corp., Ford Motor Co. and Johnson Controls Inc.
The agreement means Plastech will continue to supply parts to Chrysler at least through the end of August.
Plastech filed for bankruptcy protection Feb. 1. It had stopped shipping parts to Chrysler, causing four plants to close briefly before the two companies agreed that shipments would resume.
The two sides continue to haggle in court over whether Chrysler can retrieve equipment it owns from Plastech. Chrysler is appealing a ruling that it can't retrieve the equipment.
Chrysler said in a statement that the financing order "reaffirms the company's intent to continue to work with all parties to ensure the uninterrupted delivery of parts to its plants."
A message was left for Plastech general counsel Kelvin Scott.
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