Funds move to halt Chrysler restructuring

Discussion in 'Wall St. News' started by ASusilovic, May 22, 2009.

  1. Three of Chrysler’s secured creditors are mounting a fresh attempt to thwart the carmaker’s Chapter 11 reorganisation, arguing it violates their legal rights and US government authority under the TARP scheme. The three – all Indiana state pension funds – are among a group of 46 creditors that recently appeared to back away from efforts to derail the process under which a “new” Chrysler would emerge from bankruptcy protection by July 1 under ownership of a union healthcare trust, the US government and Italy’s Fiat.