GM Closely Watched By Stillwater Mining

MATTHEW BROWN

BILLINGS, Mont. (AP) — An official at Stillwater Mining Co., which sells platinum and palladium for catalytic converters in automobiles, says the company is closely monitoring General Motors' bankruptcy to see if Stillwater contracts with the auto giant will be honored.

All the palladium and 70 percent of the platinum produced by the company's mines near Nye, in south-central Montana, is committed to filling contracts with GM and Ford, Stillwater spokesman John Beaudry said Monday.

With GM facing a sweeping reorganization as part of a government-sponsored rescue, Beaudry said Stillwater could be hurt if that contract is modified as the automaker works through U.S. Bankruptcy Court.

"In the best case scenario, the contract is honored and we move forward and GM emerges from the bankruptcy as a stronger company. In the worst case, they could ask to revisit the terms of the supply contract," Beaudry said.

Stillwater, which has offices in Columbus west of Billings, warned in a May 6 financial filing with the Securities and Exchange Commission that "a bankruptcy filing by General Motors Corporation may have widespread consequences."