Michigan files objection to Chrysler sale

Late yesterday, the Michigan Workers’ Compensation Agency and Funds Administration attempted to stop Chrysler from selling its assets. In a legal brief, Mike Cox, the state’s attorney general, said Chrysler’s plan to abandon its $140 million obligation could bankrupt the fund that supports employees who are injured on the job.

Chrysler, like most large companies, does not have outside workers’ compensation insurance. It is self-insured. Should the company become unable or unwilling to meet its obligations, the state fund could become insolvent, leaving injured workers without resources.

Corinne Ball, Chrysler’s lead attorney in its bankruptcy case, said the automaker is committed to operating within the law and wants to honor its obligations. A Chrysler spokeswoman said the company is already working with the state agency but did not give any specifics.

Judge Arthur J. Gonzalez said he would rule later on the state’s objection but declined to postpone the May 27 approval date for the sale.