Chrysler looking for approval to sue Daimler

Chrysler is once again the focus of a case in front of bankruptcy court judge, Arthur Gonzalez. A hearing has been scheduled by Gonzalez for Aug 13, on the request of certain creditors of Chrysler’s, who seek to sue Daimler AG. The group of creditors claims that Daimler’s 2007 sale of the company to Cerberus Capital Management had stripped it of its most valuable assets.

“This is completely without merit and we intend to defend ourselves vigorously,” Daimler spokesman Han Tjan told Reuters.

In a motion filed monday with the New York bankruptcy court, the group representing the company’s unsecured creditors stated that more than $3 billion in damages is being sought; an amount considerably larger than the $2 billion paid to Chrysler’s secured creditors.

Gonzalez is the same judge that cleared the way for chrysler to emerge from bankruptcy this past June.

-By Stephen Calogera

Source: Reuters