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Auto supplier goes bankrupt after $30M verdict in defective parts lawsuit

Auto supplier goes bankrupt after $30M verdict in defective parts lawsuit

Southfield, Mich.-based automotive supplier Wrena LLC filed for bankruptcy Monday with the intention of selling the business after being ordered to pay $30 million in a lawsuit over defective parts.

The company petitioned for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Michigan with liabilities between $10 million and $50 million, and just over $2 million in machinery and equipment assets, according to the filing.

Wrena and its parent company, Angstrom Automotive Group LLC, were hit with a $30 million jury verdict in Ohio a few months ago in a case won by power electronics giant Eaton Corp. The jury ruled against Angstrom and Wrena on four counts, awarding damages for parts defects tied to clutch failures.

That verdict, along with “rising costs” and “other market pressures” led to the company seeking bankruptcy and a court-approved sale process, according to a news release from Wolfson Bolton Kochis PLLC, which is representing Wrena in its bankruptcy. Scott Eisenberg is listed as the chief restructuring officer on the case. read more