NEW YORK — Attorneys for Chrysler LLC said the company will file a motion by today to sell substantially all of its assets to Italian automaker Fiat Group SpA, but that won’t include eight plants, including five the automaker revealed it will shutter by the end of next year.
While Chrysler faced its first hearing Friday in Manhattan bankruptcy court, court documents showed the automaker plans to close plants in Michigan, Missouri, Ohio and Wisconsin that employ about 4,800 people. Chrysler said they will be offered jobs elsewhere.
The company also announced President and Vice Chairman Tom LaSorda is retiring effective immediately.
Judge Arthur Gonzalez approved motions Friday, launching events designed to ensure Chrysler’s bankruptcy is the quick and "surgical” one the company and the U.S. government have promised.
But Chrysler eventually must deal with creditors who refused to come to a deal that would have erased much of the automaker’s debt and might have avoided a bankruptcy filing in the first place.
Another hearing was scheduled for Monday morning, where Chrysler attorneys will ask Gonzalez to let the company start using $4.5 billion in loans from the U.S. and Canadian governments to keep operating under bankruptcy protection.
Chrysler, the nation’s third-largest automobile manufacturer, filed for bankruptcy protection Thursday after a group of creditors defied government pressure to wipe out the automaker’s debt.
The company plans to emerge in as few as 30 days as a leaner, more nimble company, with Fiat potentially becoming the majority owner.
by the associated press
While Chrysler faced its first hearing Friday in Manhattan bankruptcy court, court documents showed the automaker plans to close plants in Michigan, Missouri, Ohio and Wisconsin that employ about 4,800 people. Chrysler said they will be offered jobs elsewhere.
The company also announced President and Vice Chairman Tom LaSorda is retiring effective immediately.
Judge Arthur Gonzalez approved motions Friday, launching events designed to ensure Chrysler’s bankruptcy is the quick and "surgical” one the company and the U.S. government have promised.
But Chrysler eventually must deal with creditors who refused to come to a deal that would have erased much of the automaker’s debt and might have avoided a bankruptcy filing in the first place.
Another hearing was scheduled for Monday morning, where Chrysler attorneys will ask Gonzalez to let the company start using $4.5 billion in loans from the U.S. and Canadian governments to keep operating under bankruptcy protection.
Chrysler, the nation’s third-largest automobile manufacturer, filed for bankruptcy protection Thursday after a group of creditors defied government pressure to wipe out the automaker’s debt.
The company plans to emerge in as few as 30 days as a leaner, more nimble company, with Fiat potentially becoming the majority owner.
by the associated press
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