Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
TSY Exhibit

TSY Exhibit

Ratings: (0)|Views: 133|Likes:
Published by zerohedge

More info:

Published by: zerohedge on May 02, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

06/16/2009

pdf

text

original

 
LEV L. DASSINActing United States Attorney for theSouthern District of New York By: JEANNETTE A. VARGASTARA LAMORTEAssistant United States Attorneys86 Chambers Street, Third FloorNew York, New York 10007Telephone: (212) 637-2678/2746Facsimile: (212) 637-2702Email:Jeannette.Vargas@usdoj.gov Tara.LaMorte2@usdoj.gov- and -John J. RapisardiCADWALADER, WICKERSHAM & TAFT LLPOne World Financial CenterNew York, New York 10281Telephone: (212) 504-6000Facsimile: (212) 504-6666Email: john.rapisardi@cwt.com
UNITED STATES BANKRUPTCY COURTSOUTHERN DISTRICT OF NEW YORK
--------------------------------------------------------------------------x::::::::::::x Chapter 11Case No. 09-50002 (AJG)(Jointly Administered)In re:Chrysler LLC,
et al.
,Debtors.--------------------------------------------------------------------------
STATEMENT OF THE UNITED STATESDEPARTMENT OF THE TREASURY IN SUPPORTOF THE COMMENCEMENT OF CHRYSLER LLC’S CHAPTER 11 CASE
TO THE HONORABLE ARTHUR J. GONZALEZ,UNITED STATES BANKRUPTCY JUDGE:The United States of America, through the United States Department of theTreasury (“Treasury”), by its attorney, Acting United States Attorney Lev L. Dassin, submits thisstatement (a) in support of the cases commenced under chapter 11 of title 11, United States Code
 
(the “Bankruptcy Code”) by Chrysler LLC and certain of its affiliates (collectively, “Chrysler”),and certain of the related relief being or to be sought by Chrysler; (b) to set forth the relevantstatutory authority pursuant to which Treasury intends to participate in this case as a post-petitionlender to Chrysler; and (c) to set forth the facts regarding Treasury’s role in these cases.
Preliminary Statement
1.
 
For more than a century, factory workers, engineers, technicians,secretaries and others in the American auto industry have joined together to build cars and, moreimportantly, middle class lives and communities which have strengthened the American fabric.Now, in the midst of exceptional economic uncertainty, the automotive industry faces a crisis.The importance of this industry to the American economy and, indeed, the American way of lifecannot be overstated. Recognizing this, the United States of America, through Treasury and itsPresidential Task Force on the Auto Industry (the “Auto Task Force”),
1
has implementedunprecedented programs to support the domestic automotive industry through this difficultperiod, including credit support for receivables issued by certain major domestic vehiclemanufacturers,
2
support for consumer warranties,
3
and direct loans to manufacturers, including$4 billion in loans to Chrysler.
 4
 
1
The Auto Task Force is a cabinet-level group led by Treasury Secretary Timothy F. Geithner andNational Economic Council Director Laurence H. Summers, which includes the Secretaries of Transportation, Commerce, Labor and Energy. It also includes the Chair of the President’s Council of Economic Advisors, the Director of the Office of Management and Budget, the Environmental ProtectionAgency Administrator and the Director of the White House Office of Energy and Climate Change. Themembers of the Auto Task Force, along with their official designees and the Auto Task Force’s advisors,are charged with advising the President of the United States on the state of, and support for, the domesticauto industry. See Press Release, The White House Office of the Press Secretary, Geithner, SummersConvene Official Designees to Presidential Task Force on Auto Industry (Feb. 20, 2009)http://www.whitehouse.gov/the_press_office/Geithner-Summers-Convene-Official-Designees-to-Presidential-Task-Force-on-the-Auto/.
2
See Press Release, Auto Supplier Support Program: Stabilizing the Auto Industry at a Time of Crisis,http://www.treas.gov/press/releases/docs/supplier_support_program_3_18.pdf.
2
 
2.
 
Treasury, however, has always been cognizant of the fact that theseprograms, while integral to supporting the domestic auto industry through this difficult economicperiod, do not alone provide a long term solution for the industry in general, and Chrysler inparticular. Treasury is also aware that this long term solution does not exist absent significantconcessions from all parties in interest, and that the American public cannot and should not beput in the position of funding indefinitely companies that have no realistic chance of being viablewithout public assistance. As the President has stated:The situation at Chrysler is more challenging. It’s with deepreluctance but also a clear-eyed recognition that we’ve determined,after careful review, that Chrysler needs a partner to remainviable. . . . Still, such a deal would require an additionalinvestment of taxpayer dollars, and there are a number of hurdlesthat must be overcome to make it work. I’m committed to doingall I can to see if a deal can be struck in a way that upholds theinterests of American taxpayers. . . . But if [Chrysler] and theirstakeholders are unable to reach such an agreement . . . we will notbe able to justify investing additional tax dollars to keep Chryslerin business.Barack Obama, President of the U.S., Remarks by the President of the United States on theAmerican Automotive Industry (Mar. 30, 2009), http://www.whitehouse.gov/the_press_office/ Remarks-by-the-President-on-the-American-Automotive-Industry-3/30/09/.3.
 
Accordingly, irrespective of how Chrysler came to this point, it, alongwith its employees, vendors, dealers, customers and the communities built around Chrysler’soperations, now face two sharply divergent possibilities: Chrysler can liquidate, wind down itsoperations, and end its long history of building American cars; or Chrysler can consummate a
3
See http://www.treas.gov/initiatives/eesa/AIFP/WarranteeCommitmentProgram.pdf.
4
Pursuant to the Loan and Security Agreement dated December 31, 2008, by and between ChryslerHolding LLC and Treasury, Treasury loaned to Chrysler Holding LLC, the parent of Chrysler, $4 billion.
3

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->