Tower Automotive asks court to disallow claims made by employees of former Milwaukee facility

By Jennifer Lanning Drey

Portland, Ore., June 8 - Tower Automotive, Inc. asked the U.S. Bankruptcy Court for the Southern District of New York to disallow certain claims made by retirees of its former Milwaukee facility, in a motion filed Friday with the court.

According to the motion, the claims were filed by Milwaukee retirees represented by the retiree committee and the Milwaukee facility unions prior to a settlement reached between the company, the retiree committee and the unions.

Tower said in the motion that the claims are duplicative of the general unsecured claims already granted under the retiree settlements.

The retirees will recover on account of the retiree claims from the benefits received from the Retiree Committee VEBA and the Milwaukee Unions VEBA and should not receive duplicate recovery under the company's plan of reorganization, Tower said in the motion.

Therefore, the company said it has no liability for the claims.

A hearing has been scheduled for July 10.

Tower, a Novi, Mich.-based auto parts maker, filed for bankruptcy on Feb. 1, 2005. Its Chapter 11 case number is 05-10578.

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