Tadir-Gan Ltd. (Precision Products) (TASE:TDGN) today reported to the Tel Aviv Stock Exchange that it had received a payment of $412,857 from General Motors in the US (GM USA) and an additional payment of €530,125 from GM Europe. Tadir-Gan manufactures machine-assembled aluminum high-pressure die cast products for the vehicle industry.
Tadir-Gan reported in early June that under the terms of Chapter 11 bankruptcy protection with the US Court for the Southern District of New York (Manhattan), GM US had stated that it was seeking permission from the court to pay some of its suppliers of products essential to its business, including payment for goods and services supplied prior to the June 1 filing for bankruptcy protection. The court has given this approval for payments to companies, like Tadir-Gan, that have signed trade agreements.
The trade agreement stipulates that Tadir-Gan will continue supplying products to GM, while the US carmaker will pay Tradir-Gan for products received before June 1. GM will pay the most recent debts first and subsequently the earlier amounts owed.
GM USA informed Tadir-Gan that they will pay them an additional $46,868 on August 2.
Tadir-Gan's share was down 3.25% in the afternoon at NIS 1.16.
Published by Globes [online], Israel business news - www.globes-online.com - on July 5, 2009
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