Dingell: Bankruptcy is 'Quick Rinse'

Congressman John D. Dingell (D-MI15) released the following statement in reaction to President Obama’s announcement that Chrysler LLC will file for a Chapter 11 Section 363 (b) bankruptcy proceeding:

“Chrysler made tremendous strides in its effort to meet the demanding restructuring goals set forth by the Administration. Chrysler secured historic deals with Fiat Group SpA, the UAW, Cerberus, Daimler, the U.S. and Canadian governments and a majority of its secured lenders. The rogue hedge funds that refused to agree to a fair offer to exchange debt for cash from the U.S. Treasury – firms I label as the “vultures” – will now be dealt with accordingly in court.

“The significant agreements made by Chrysler and its stakeholders, including Fiat and the UAW, should not be discounted; in fact they should be commended. The Chrysler-Fiat alliance holds great promise and I am hopefully that Chrysler will emerge from this “quick rinse” bankruptcy swiftly and in a great position to re-emerge as a dominant force in the automotive sector.

“Chrysler employs some of the greatest workers in the world; in bankruptcy, the workers and the retirees must be protected. UAW members faithfully demonstrated that they a willing participant in the restructuring by ratifying a painful new contract, and their laudable sacrifices should be recognized by the bankruptcy judge. The President has committed that the retiree pensions and VEBA agreements will be protected. We must also ensure that the Chrysler supply chain is stabilized during this temporary period of uncertainty and consumers are reassured that the Chrysler automobile warranty is the strongest in the country, as it has the backing of the United States government. I will be working with President Obama and his Administration, my colleagues in the Michigan Delegation, Governor Granholm and all interested stakeholders to ensure that as Chrysler is in court, and once they emerge, they are in the best possible position to emerge a stronger American company.”

www.house.gov/dingell