INDIANA PENISON FUNDS SEEKS INDEPENDENT TRUSTEE IN CHRYSLER BK

The Indiana Pension Fund filed a Motion in the Chrysler Bankruptcy today asking the Court to take away Chryslers "debtor in possession" status which allows it to run the company and appoint an independent Trustee and investigator. The Pension fund is a secured lender and holds notes that are secured as a first lien on Chrysler's asssets. The Pension fund argued in its Court filing that the Debtors are being used by the United States government to improperly destroy the Indiana Pensioners’ security interests and property rights in the collateral through the implementation of a sub rosa (under the table) plan of reorganization that could never be confirmed under the Bankruptcy Code. In so doing, the Debtors and the government are not only trampling on the legal rights of Chrysler creditors, they are also in clear violation of TARP, the EESA, and the Constitution of the United States. This cannot be allowed to continue. The Court must appoint a trustee to put the Debtors back into the hands of disinterested management that will run the Debtors’ businesses for the best interest of the estates and in accordance with the Debtors’ fiduciary obligations to their creditors. In the interim, an examiner should also be appointed to investigate and report on the role of the government in these proceedings. The Court filing in its entirety will be posted on www.smithlawmt.com under the Dealer Lawyer tab first thing Thursday morning.