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May 5, 2009

Chrysler Motion to Approve Sale of Substantially All of its Assets to Fiat

Chrysler has filed its motion to approve the sale to Fiat.  The motion has attached the actual sale agreement with Fiat and the "Definitions Addendum."  The 250 page motion and attachments can be accessed here.  The supporting Points and Authorities can be accessed here.  Chrysler is taking the position that the lienholders are being paid the full "economic value" of their liens and therefore 363(f) has been met as to non-consenting lienholders.  I'm positive that I have read that that analysis is flawed because it takes away the 363(f) protections give to lienholders, i.e., that a sale will not be approved free and clear of all liens unless the lienholders agree or are paid in full (and a couple of other exceptions).  Chrysler is also arguing that the sky will fall on all of us if this sale is not completed right now.

There is no hearing date yet for the sale motion.  Presumably that will be in a few weeks.   

May 5, 2009 in Current Affairs | Permalink

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