The first hearing on the bankruptcy case of Chrysler LLC, which opened in New York Friday, focused on maintaining wages and benefits for workers, and warrantees for buyers.
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Lawyers Martin Bienenstock (L) and Judy G.Z. Liu representing Chrysler Financial leave U.S. Bankruptcy Court after the hearing in New York, May 1, 2009. Chrysler LLC was in bankruptcy court Friday to obtain permission to continue paying employees and meeting customer and dealer obligations against a backdrop of mounting opposition from certain of its lenders. [Xinhua]
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Chrysler's first hearing "may offer the first clue as to whether a quick, 'surgical' bankruptcy is possible," says the Associated Press.
The nation's third-largest automaker filed for Chapter 11 bankruptcy protection Thursday with an ambitious plan to emerge in as little as 30 days as a leaner, more nimble company.
Corinne Ball, a partner at Jones Day, one of the firms representing Chrysler, said that maintaining pay and benefits for the company's 38,000 workers is "important to preserving our ability to keep the organization intact," according to a CNN report.
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A woman who fell in faint during the Chrysler hearing is carried out of U.S. Bankruptcy Court in New York, May 1, 2009. Chrysler LLC was in bankruptcy court Friday to obtain permission to continue paying employees and meeting customer and dealer obligations against a backdrop of mounting opposition from certain of its lenders. [Xinhua]
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After the hearing, Frederic Spar, a spokesman for Kekst and Co., an advisory firm that represents Chrysler, said maintaining consumer agreements through the bankruptcy process is also key to the company's interests.
"The most important things are the warrantees to the owners and buyers and cars," said Spar. "They're the lifeblood of the company."
The hearings continue on Monday.
