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Bankruptcy

: Credit Slips

Another Chrysler Appeal

By Stephen Lubben

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This time a dealership, appealing from the bankruptcy court's order authorizing the rejection of the dealership agreement. I don't get the fight these dealers are putting up -- once the sale closed, staying with "old Chrysler" does not strike me as an attractive alternative.

But perhaps the appeal is to clarify the effect of the rejection on the dealers state-law remedies. Nonetheless, might be time for some cost-benefit analysis -- and keep in mind every appeal means more professional expenses for the debtor and less chance of any recovery for the unsecured creditors.

Full post as published by Credit Slips on June 11, 2009 (boomark / email).

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