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Plastech seeks approval of deal settling claims related to Ink-Logix agreement
By Jennifer Lanning Drey
Portland, Ore., June 16 - Plastech Engineered Products, Inc. requested court approval of a settlement that would eliminate all claims made in connection with Ink-Logix LLC, a limited liability company agreement between Plastech's chief executive officer and T-Ink, Inc., according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.
Under the related limited liability company agreement, Plastech chief executive officer Julie N. Brown obtained interests in Ink-Logix and agreed to make a $2 million initial capital contribution and subsequent contributions of up to $2 million if certain milestones were met, according to the motion.
In June 2006 Plastech paid the initial contribution of $2 million to T-Ink on behalf of Brown as part of a distribution of retained earnings to Brown. Later that year, Plastech transferred $234,000 to Ink-Logix on behalf of Brown as another distribution of retained earnings to Brown.
Subsequently, T-Ink filed numerous lawsuits against Brown, and Brown and Plastech filed lawsuits against related parties.
In August, Brown filed an action in the Delaware Court of Chancery against T-Ink that resulted in an order enjoining the arbitration and dismissing it in part, according to the motion.
Under the proposed settlement, the parties involved in the settlement will release their claims against each other, T-Ink will pay Plastech $176,391 and will pay Brown $1.90 million.
Brown will in turn sell her entire interest in Ink-Logix to T-Ink.
Plastech, a Dearborn, Mich.-based auto parts supplier, filed for bankruptcy on Feb. 1. Its Chapter 11 case number is 08-42417.
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