United States Court of Appeals for the Second Circuit
576 F.3d 108 (2009)
On April 20, 2009, after a lengthy financial slide downward, Chrysler LLC (Old Chrysler) (defendant) filed a prepackaged Chapter 11 bankruptcy petition that included the terms of an asset sale. Old Chrysler would sell substantially all of its operating assets to New CarCo Acquisition LLC (New Chrysler) (defendant) in exchange for $2 billion in cash and New Chrysler’s assumption of certain liabilities. Fiat S.p.A. (defendant) would provide New Chrysler with management, fuel-efficient vehicle platforms, and access to its distribution system, in exchange for a 20 percent equity interest with the right to acquire more. The United States government and Export Development Canada (defendants) would provide close to $11 billion in financing in exchange for a total of 10 percent ownership interest in New Chrysler. A union-created employee-benefit entity (defendant) would receive 55 percent ownership of New Chrysler. In the two years prior to the bankruptcy filing in which Old Chrysler looked for suitable strategic alliances with other entities, Fiat emerged as the only viable option. The only alternative was liquidation, which would yield more than $1 billion less than the proposed sale. The bankruptcy court approved the sale by an order dated June 1, 2009. The Indiana State Police Pension Trust, the Indiana State Teachers Retirement Fund, the Indiana Major Moves Construction Fund and certain other tort claimants and others (plaintiffs) appealed. The Court of Appeals for the Second Circuit affirmed the order but stayed its decision pending Supreme Court review. The Supreme Court granted one extension then allowed it to expire without taking further action.
Rule of Law
Holding and Reasoning (Jacobs, C.J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 205,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.