Chrysler LLC’s sale to Fiat SpA was appealed by auto dealerships seeking to ensure that they can challenge how the deal affects their claims against the bankrupt automaker.
Performance Dodge LLC and 20 other dealers want to protect their rights to make administrative or damage claims stemming from the rejection of their Chrysler franchises, Russell McRory, a lawyer representing the group, said yesterday. The dealers filed papers in U.S. Bankruptcy Court in Manhattan.
"The horse is out of the barn in terms of the sale itself," McRory said. "We want to address certain aspects of the order."
A group led by Fiat completed the purchase of most Chrysler LLC assets on June 10, forming the world’s sixth-largest car manufacturer, after the U.S. Supreme Court rejected creditors' objections. Chrysler, based in Auburn Hills, Michigan, sought bankruptcy protection on April 30.
Before the sale, U.S. Bankruptcy Judge Arthur Gonzalez approved Chrysler's plan to reject 789 dealer agreements, as called for by the Fiat accord. The group has 10 days to file a statement of issues on appeal.
The case is In re Chrysler LLC, 09-50002, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
