Cadence, GM reach agreement for return of tooling, equipment critical to manufacturing

By Caroline Salls

Pittsburgh, Dec. 30 - Cadence Innovation LLC and General Motors Corp. have reached an agreement resolving a tooling and equipment dispute after GM filed a lawsuit Dec. 24 asking the U.S. Bankruptcy Court for the District of Delaware to force Cadence to turn the tooling and equipment over to GM, according to the settlement filed Monday.

Under the settlement, GM acknowledged that Cadence has released all tooling scheduled for release before the settlement was reached. However, if the parties agree that any of that tooling has not been released, it will be released immediately.

In addition, Cadence was to begin releasing all designated equipment by Dec. 29.

In exchange for release of the equipment, GM will pay a total of $4.5 million to Cadence.

According to the GM lawsuit, Cadence is "holding hostage tooling and equipment critical to the manufacture of parts for GM vehicles," in contradiction to a court-approved accommodation agreement.

GM said Cadence's failure to comply with its contractual obligations was unjustified and threatened GM's vehicle assembly operations.

Specifically, GM said alternative customer tooling and designated equipment is not readily available, and new tooling and equipment cannot be manufactured in time to prevent a production interruption at GM assembly plants.

Cadence is a Troy, Mich.-based auto parts supplier. Its Chapter 11 case number is 08-11973.

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