Old Carco asks court to block dealer lawsuits

Old Carco, the company created to handle assets abandoned by Chrysler Group LLC when it exited bankruptcy, has asked the U.S. Bankruptcy Court in New York to stop lawsuits filed by eleven terminated dealerships. The dealerships are trying to sue to regain their franchises.

The motion, filed Tuesday, asserts the dealers are trying to do an “end run” around the court, which approved the terminations in May.

In the motion, the Jones Day law firm, which represents Old Carco, said: “These actions constitute an intentional and brazen attack on this court’s jurisdiction and authority.”

Chrysler is supporting the motion. In a a prepared statement, representatives for the automaker said: “Old Carco was forced to take this action as a result of the actions of the 11 dealers. By taking the actions noted in the motion, the rejected dealers have directly violated the orders of Judge Gonzalez and the bankruptcy court. Instead of appealing the sale and rejection orders in the proper bankruptcy court forum, they are seeking to do an end run on the court’s orders.”

A hearing on the motion has been set for August 27.