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Bankruptcy

: Credit Slips

In other Chrysler news

By Stephen Lubben

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The bankruptcy court entered an order today that allows the debtor to reject more than 700 dealership agreements, effective today. The order includes the following slightly odd finding:

To the extent that any Dealer Laws conflict with the terms of this Order or the impact of the rejection of the Rejected Agreements under the Bankruptcy Code and applicable case law, such laws are preempted by the Bankruptcy Code, pursuant to the Supremacy Clause of the United States Constitution.

Essentially this is a restatement of the law of preemption.  A broad restatement.  Not really a finding. More relevant to the dealers, the bankruptcy court retains jurisdiction over "all matters relating to the implementation, enforcement and interpretation of this Order." That is, don't even try to go to state court on this.

The order indicates that the court will issue an opinion on this in the near future. Just in case some other debtor wants to cite it.

Full post as published by Credit Slips on June 09, 2009 (boomark / email).

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