In re Chrysler LLC, No. 09-2311 - U.S. Second Circuit
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In re Chrysler LLC, No. 09-2311

District Court order authorizing the sale of substantially all of Chrysler LLC's assets to New CarCo Acquisition LLC is affirmed where: 1) the bankruptcy court did not abuse its discretion in approving the sale as the sale did not constitute an impermissible sub rosa plan and prevented further, unnecessary losses; 2) the court properly held that although the plaintiffs did not consent to the sale order's release of all liens on Chrysler's assets, consent was validly provided by the collateral trustee, who had authority to act on behalf of all first-lien credit holders; 3) the plaintiffs lack standing to raise the issue of whether the Secretary of the Treasury exceeded his statutory authority by using TARP money to finance the sale of Chrysler's assets as they cannot demonstrate that they have suffered an injury in fact; and 4) arguments advanced by present and future tort claimants against the portion of the sale order extinguishing all existing and future claims against New Chrysler are rejected.    

Read In re Chrysler LLC, No. 09-2311

Appellate Information
Appeal from the United States Bankruptcy Court for Southern District of New York.
Argued: June 5, 2009
Decided: June 5, 2009
Opinion filed: August 5, 2009

Judges
Before: JACOBS, Chief Judge, KEARSE and SACK, Circuit Judges.
Opinion by JACOBS, Chief Judge.

Counsel
For Appellant: GLENN M. KURTZ, THOMAS E. LAURIA, White & Case LLP, New York, NY.

For Appellee: THOMAS F. CULLEN, Jones Day, Washington, D.C.