May 4, 2009

Bankruptcy judge moves back hearing on motion to approve procedures to May 5

UAW to seek seat on Unsecured Creditors Committee

As mentioned in the prior update, the Bankruptcy Court began a hearing on May 4 to consider the motion to approve the procedures for providing formal notices to creditors and retirees in connection with the various agreements, including the sale of Chrysler operating assets to the newly-formed company. That new company is to be owned by Fiat, the U.S. Treasury, and the UAW retiree benefit Trust Fund in accordance with the agreements described in the prior update. This motion is the first step in seeking court approval of the various agreements between Fiat, the United States Treasury, Chrysler and the UAW.

The judge this morning decided to postpone consideration of these matters until 2:30 p.m. on May 5. Also scheduled for May 5 is a “formation meeting” for the Unsecured Creditors Committee. The UAW will be seeking a seat on that committee at the meeting on May 5.