U.S. to Get Little Money Back in Old Chrysler Liquidation
NEW YORK - Chrysler LLC, the 85-year-old carmaker still partially in bankruptcy as Old Carco LLC, won approval to liquidate under a plan that may repay the U.S. almost nothing for its bailout and lets unsecured creditors keep any proceeds from a pending lawsuit against Daimler AG, Bloomberg reported.
U.S. Bankruptcy Judge Arthur Gonzalez in Manhattan Tuesday approved Old Carco's Chapter 11 liquidation, which resolves all remaining objections in the case that began on April 30, 2009. The day it filed, Chrysler agreed that Fiat S.p.A. would pay $2 billion for a stake in the company while Chrysler kept the remnants, including $27 billion of debt, in bankruptcy. A federal appeals court in Manhattan upheld the sale.
“The relevant confirmation standards have been satisfied, therefore the court confirms the plan,” Gonzalez said.
About 98 percent of creditors had voted in favor of the plan, and 19 outstanding objections were resolved or overruled during a Tuesday hearing that lasted almost four hours. The company's wind-down plan will become effective April 30.
“In 10 days it will be the anniversary of the filing,” Jeffrey Ellman, a Chrysler attorney, told Gonzalez, saying it was difficult to reach consensus on a wind-down plan for such a large company. He also spoke of the “extraordinary circumstances in which the bankruptcy was filed, for the company, the economy, and the country.”
“Extensive amounts of time have been spent to develop funding for the liquidation plan,” he added.
Ellman said at a Jan. 21 hearing that a key issue was whether the company would have enough money to liquidate its remaining assets, given the U.S. had allotted only $260 million for wind-down costs.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →