Chrysler Files Motion to Reject 789 Dealer Agreements

On May 14, Chrysler file its long awaited motion seeking an order "pursuant to Sections 105, 365 and 525 of the Bankruptcy Code and Bankruptcy Rule 6006 authorizing the rejection of executory contracts and unexpired leases with certain domestic dealers." In plain English, the motion seeks to reject the dealer franchise agreements of approximately one-quarter of Chrysler's dealer network. Opposition is due May 26 and a hearing is set for June 3.