« Law - "New Hampshire. Legislature Approves Gay Marriage " | Main | Ind. Courts - "Justice Sullivan heading to D.C. appeals court?" »
Wednesday, June 03, 2009
Courts - More on "Judge Moves Appeal of Chrysler Sale to 2nd Circuit" [Updated]
Updating this entry from earlier today, here is the stay request filed yesterday with the 2nd Circuit by the Indiana Pensioners.
[Updated 6/4/09] "Indiana's appeal puts Chrysler deal on hold: Court to hear treasurer's argument questioning bailout," is the headline to a story this morning by Ted Evanoff on the front-page of the Indianapolis Star.
[More] Bree Fowler reports for the AP:
NEW YORK (AP) — Chrysler heads back to bankruptcy court Thursday to ask the judge overseeing its case to allow it to terminate the franchise agreements of 789 of its dealers, despite the protests of many dealers who say the move could shutter their businesses for good.U.S. Judge Arthur Gonzalez is expected to hear testimony from Chrysler LLC executives and dealers during what's expected to be a lengthy hearing. The proceedings start at 8 a.m. EDT.
Auburn Hills, Mich.-based Chrysler maintains that it needs to reduce its dealer base by about 25 percent to a leaner network of about 2,400 dealers in order to emerge from Chapter 11 bankruptcy protection as a stronger company.
But the dealers argue that they don't cost the automaker anything. They say that if Gonzalez approves Chrysler's motion it will result in the shuttering of hundreds of dealerships and thousands of workers will lose their jobs.
A group representing about 300 of the dealers slated to lose their franchises have filed an objection. They also earlier objected to Chrysler's motion to sell the bulk of its assets to a group led by Italy's Fiat Group SpA, because it was tied to the plan to eliminate the dealerships.
Thursday's hearing comes a day ahead of Chrysler's appearance in front of the U.S. Court of Appeals for the Second Circuit in New York.
Posted by Marcia Oddi on June 3, 2009 06:26 PM
Posted to Courts in general