Plastech lender's claim mostly relegated to unsecured status

By Caroline Salls

Pittsburgh, Dec. 4 - Plastech Engineered Products, Inc. lender Wachovia Corp.'s $22.79 million secured claim will primarily be treated as an unsecured claim after Plastech's preliminary secured claim objection was sustained by judge Phillip J. Shefferly, according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

Specifically, $1 million of Wachovia's claim will be treated as a secured claim, and the balance of the claim will be treated as an unsecured claim.

According to Shefferly's ruling, Plastech owes Wachovia $1 million in connection with the company's pre-bankruptcy first-lien term loan.

Meanwhile, the $21.79 million claim balance stems from an early termination fee related to a Wachovia swap agreement that was terminated on Feb. 7.

Plastech, a Dearborn, Mich.-based auto parts supplier, filed for bankruptcy on Feb. 1, 2008. Its Chapter 11 case number is 08-42417.

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