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Chrysler Updates

By Anonymous

From the AP: Judge OKs Chrysler plan to terminate franchises. The AP is reporting that U.S. Judge Arthur Gonzalez said Chrysler can terminate 789 dealers effective immediately.

From the SCOTUS Blog: Chrysler and the meaning of June 15

[I]t seemed clear that Ginsburg ? and perhaps the full Court ? were awaiting the new round of briefing on what a widely disputed June 15 ?deadline? means.

It is not clear how central this dispute is to the Justices? ultimate view of the legal and financial situation, but there was no doubt of the vigor with which all sides were debating that question.

The Indiana funds, in a somewhat triumphant though brief filing, contended Tuesday that they had undermined the claims that Fiat would back out and the deal would collapse if it is not closed by next Monday. Its evidence was a brief wire story on Bloomberg News quoting a Fiat executive as saying it ?would never walk away? from the pact.

By early afternoon, the three main defenders of the rescue plan joined the new battle, with Fiat saying that the benefit funds? new thrust was ?unwarranted.? The deal, by its own express terms, ?will terminate automatically? if not closed ?on or before June 15.? (emphasis in the original).

And from Steve Jakubowski at the Bankruptcy Litigation Blog: What's Bothering Ruthie? Chrysler Bankruptcy Sale Opinion Analysis - Part II

I'm guessing, though, that what bothers her most -- and frankly what's really been bothering me most (hence Part II) -- is the sale's treatment of tort claimants, both present and future, and Judge Gonzalez's cursory justification for such treatment.

And other auto news from CNBC: US House Passes 'Cash for Clunkers' Plan

[T]he House approved a plan Tuesday to provide vouchers of up to $4,500 for consumers who turn in their gas-guzzling cars and trucks for more fuel-efficient vehicles.

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