GM Sues Performance Transportation, Says Cars Held ‘Hostage’

By Christopher Scinta

June 24 (Bloomberg) — General Motors Corp. sued car-hauler Performance Transportation Services Inc., saying 281 of the automaker’s new cars are being held “hostage” by the bankrupt company.

GM had previously contracted with Performance, once the second-largest new-car hauler, to deliver vehicles. The hauler, based in Allen Park, Michigan, Performance closed down June 13 after a strike by the International Brotherhood of Teamsters prompted lenders to cut off its funding.

“Debtors are holding 281 new GM vehicles, with an estimated value of $8.5 million, hostage,” GM said in its lawsuit, filed June 20 in U.S. Bankruptcy Court in Buffalo, New York. “This court should order their immediate return.”

Garry Graber, Performance’s attorney, didn’t immediately return a call seeking comment.

Detroit-based GM said if the cars aren’t returned promptly, it will suffer “loss of goodwill and damage to customer relations,” according to its complaint, filed with U.S. Bankruptcy Judge Michael Kaplan.

The bankruptcy case is In re Performance Transportation Services Inc., 07-04746; the adversary case is General Motors Corp. v. Performance Transportation Services Inc., 08-01107, U.S. Bankruptcy Court, Western District of New York (Buffalo).

To contact the reporter on this story: Christopher Scinta in New York bankruptcy court at cscinta@bloomberg.net
Last Updated: June 24, 2008 16:45 EDT

Bloomberg.com: News

I can confirm that the Lewiston NY terminal had Allied there most of the day loading cars and getting them out of there.