Dealerships lose reinstatement suit

The eleven dealers who sued to have their franchises reinstated on the basis that state franchise laws had precedence over the federal bankruptcy law have had their suit dismissed by Judge Arthur Gonzalez.

Chrysler creditors sue Daimler

Having won the right to do so from Judge Gonzalez, a group of Chrysler unsecured creditors have now filed suit against Daimler, accusing the conglomerate of taking billions of dollars worth of assets from Chrysler before transferring it to Cerberus two years ago. By removing those assets, according to the creditors, Daimler made it impossible [...]

Dealers sue Chrysler

Eleven dealerships are currently trying to sue Chrysler Group, LLC, which has asked judge Arthur Gonzalez to block the suit, according to the Detroit News. The dealers are attempting to regain their franchises, saying that their state’s motor vehicles statutes outweigh the bankruptcy code. A hearing is scheduled for August 27.

The dealers are primarily from [...]

Chrysler creditors can sue Daimler

Judge Arthur Gonzalez has given Chrysler’s unsecured creditors permission to sue Daimler AG, with the claim that Daimler took away Chrysler’s most valuable assets before selling it to Cerberus Capital Management. The group is seeking over $3 billion in debt.
The details of the suit have not been released. However, it appears that the Treasury could also [...]

Dealers lose appeal to bankruptcy court

The 789 dealers about to lose their franchise have lost their appeal to the bankruptcy court, with Judge Gonzalez denying the appeal. There have been some questions about the motivation and wisdom of the process of choosing dealers to be dropped. See the integrated dealer closings page and a discussion of the issues.

Chrysler sale stayed until Monday afternoon

The U.S. Court of Appeals for the Second Circuit upheld Judge Arthur Gonzalez’s ruling but stayed the sale until Monday, pending an appeal by the Indiana pension funds to the U.S. Supreme Court.
The group’s attorney, Glenn Kurtz of Case & WHite LLC, said papers needed for the appeal are already in preparation.
If it accepts the [...]

Status of appeal: won, for now

A small group of creditors are appealing to the Supreme Court after their appeal was denied. One key creditor is a group of Indiana pension funds under the rule of elected official Richard Mourdock.
One of the judges noted that, under the TARP law, no interference with the Treasury’s “truly extraordinary” powers was possible unless there [...]