Judge Says Chrysler Creditors Can Sue Daimler
A U.S. bankruptcy judge has given permission for a group of Chrysler’s unsecured creditors to sue Daimler AG on the grounds that its 2007 sale of Chrysler stripped the Detroit automaker of its most valuable assets.
Judge Arthur Gonzalez, who ushered Chrysler through an unprecedentedly quick bankruptcy process, gave the unsecured creditors permission to file the lawsuit against Daimler on Thursday. They have until Tuesday to file.
Daimler purchased Chrysler in 1998, and sold a majority stake in the automaker to private equity firm Cerberus Capital Management in 2007, after failing to adequately merge its Mercedes-Benz luxury car brand with Chrysler’s mass-market divisions. Chrysler creditors originally presented a filing demanding $3 billion, but the filing has since been redacted and the details have yet to be released.
“We are absolutely certain that it is without merit and we will defend ourselves aggressively against any of the claims,” Daimler spokesman Han Tjan said in regards to the filings.
Source: Automotive News