Saturday, May 2, 2009

Chrysler LLC Receives Court Approval of 'First Day Motions'

/PRNewswire/ -- Chrysler LLC announced Friday that the U.S. Bankruptcy Court has granted the relief the company requested in a series of court filings known as "First-day motions." The orders issued by the court will help the company continue to operate its business during the reorganization proceedings.

Yesterday, Chrysler announced that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it had reached an agreement in principle to establish a global strategic alliance with Fiat SpA. Chrysler filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court to facilitate the restructuring and alliance.

First-day motions were filed to support Chrysler's employees, dealers, vendors and suppliers, together with its customers and other stakeholders. The Court granted approval for the company's request to continue payment of wages and health and welfare benefits to employees and contractors, and continue its customer warranty programs.

Bob Nardelli, Chrysler Chairman and CEO, said, "We accomplished a great deal today, including approval of certain First-day motions, which will enable us to transition into Chapter 11 and maintain normal operations as we move forward. Our focus now is on the next steps of this process, which we will pursue as efficiently and deliberately as possible."

The Chrysler Chapter 11 case was filed on April 30 in the U.S. Bankruptcy Court, Southern District of New York. The case number is 09-50002, with the Honorable Arthur J. Gonzalez presiding. More information about Chrysler's restructuring is available at

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