Chrysler LLC v. Plastech Engineered Products
United States Bankruptcy Court for the Eastern District of Michigan
382 B.R. 90 (Bankr. E.D. Mich. 2008)
Under a tooling agreement, Chrysler (creditor) owned specialized tooling equipment used by Plastech (debtor) to manufacture components, with Chrysler entitled to immediate possession on demand; when Plastech's finances deteriorated, Chrysler terminated the contracts and demanded return of its equipment the same day Plastech filed for Chapter 11 bankruptcy, then moved to lift the automatic stay to physically remove the equipment from Plastech's facilities.
Whether a creditor with undisputed ownership of equipment in a debtor's possession is entitled to have the automatic stay lifted to reclaim that equipment, when doing so would be necessary for the debtor's effective reorganization.