June 2, 2009

Court approves Chrysler agreements

Following four days of hearings last week, the Bankruptcy Judge issued an order late last night approving the proposed agreements which will allow with the restructuring of Chrysler.  These agreements provide for the formation of the new company and the retiree medical agreements.  Under the Judge’s order, the transactions can be completed as early as Friday, June 5. 

A single creditor holding roughly $42 million in secured debt objected to court approval and has filed an appeal of the court’s rulings.  Some Chrysler dealerships also filed objections.  The appeal will likely be heard on an expedited basis over the next few days.  Unless a court issues a “stay” of the Bankruptcy Court’s order approving the proposed sale, the sale and related transactions will likely be completed quickly in accordance with the Bankruptcy Judge’s approval order.

The UAW continues to support the process and is working with the Treasury Department and the company to assure that the agreements can be implemented quickly in order to complete the restructuring and allow the company to move forward.