What is Chapter 11, section 363 of the U.S. bankruptcy code?
A2: For the past several months, we have worked tirelessly to reach agreement with key stakeholders on concessions that would allow Chrysler to complete this alliance with Fiat and proceed with its plans without the need for a bankruptcy proceeding. Despite substantial progress on many fronts, Chrysler was not able to obtain the necessary concessions from all of its lenders. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. With this filing in the United States, we will also submit a motion under Section 363 of the Bankruptcy Code, requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler’s principal assets to the new company. The benefit of this type of filing is speed. It should allow a leaner new company to emerge in a matter of 30 to 60 days, well positioned for long-term viability.
