Motion Filed in Chrysler Bk for Affected Dealers

The law firm of SQUIRE, SANDERS & DEMPSEY, L.L.P. filed a 62 page motion in Bankruptcy Court yesterday seeking relief for Chrysler Dealers whose sales and service contracts were rejected last week. The Motion objects to Chrysler's plan to sell substantially all its assets and asks the court for an extension of time for the hearing on approval of the sale. Counsel argue that approval of the sale would: (1) destroy several hundred independent businesses across the United States; (2) ruin the livelihoods of the owners of these businesses, many of whom have operated their dealerships for decades, if not generations; (3) cause the immediate loss of thousands of jobs at the Affected Dealers and quickly reverberate in countless additional job losses at the vendors, suppliers and financiers of the Affected Dealers; (4) precipitate inevitable personal and business bankruptcies flowing from the closing of the Affected Dealers; (5) reduce tax revenues by millions of dollars annually in the states and communities where the Affected Dealers are located; (6) eliminate the significant civic and charitable support that the Affected Dealers contribute to their neighborhoods and communities; and (7) limit competition among the car-buying public, thereby harming consumers. It is impossible to overstate the irreparable harm and suffering that will be inflicted on the Affected Dealers, their thousands of employees, and their employees’ families by Chrysler’s requested relief. The Motion can be reviewed or downloaded at the Chrysler link on smithlawmt.com at the DealerLaw link.