Cadence Innovation asks court to force Exxon to supply resin pellets

By Caroline Salls

Pittsburgh, Sept. 2 - Cadence Innovation LLC filed a lawsuit Tuesday asking the U.S. Bankruptcy Court for the District of Delaware to order Exxon Mobile Chemical Co. to continue to supply the resin pellets that are essential to Cadence's manufacturing of plastic automobile parts.

According to the filing, Exxon informed Cadence on Aug. 27 that it intended to stop shipping the resin pellets as of Sept. 3.

However, Cadence said Exxon is obligated under the supply contract to continue to deliver the pellets.

Even if Exxon believes the contract has been terminated or has expired, Cadence said the contract calls for Exxon to continue to ship the resin pellets until Cadence can transition to a new supplier.

Cadence said it could take it weeks or months to access an alternate pellet supplier.

"If Exxon stops supplying resin pellets to Cadence, Cadence will, within a day or two at most, cease being able to manufacture and supply its customers," Cadence said in the filing.

As a result, Cadence said the auto manufacturers that use its plastic parts would be forced to shut down their assembly lines.

Cadence is also asking the court to order Exxon to pay its lawsuit-related costs.

Cadence, a Troy, Mich.-based auto parts supplier, filed for bankruptcy on Aug. 26. Its Chapter 11 case number is 08-11973.

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