Chrysler LLC Bankruptcy – Asset Sale Fairness Opinion

Chrysler has filed a “Declaration of Bradley A. Robins in Support of the Sale of the Debtors Assets to New Chrysler” (click document name to view) that includes as an attachment a fairness opinion of Greenhill & Co LLC.  The fairness opinion relies heavily on a liquidation analysis of Capstone Advisory Group, LLC.  That Liquidation Analysis concluded that “the value range” from a Chrysler asset liquidation (i.e. not as a going concern)  “is $0.9bn to $3.2bn on an undiscounted basis”

Chrysler LLC Bankruptcy – Scheduling of First Day Motion Hearing

The hearing on the most significant and controversial first day motions is scheduled for May 4, 2009 at 10:00 a.m. in Courtroom 523 at the United States Bankruptcy Court for the Southern District of New York, Alexander Hamilton Custom House, One Bowling Green, New York, New York 10004 1408.  Chrysler has given notice of the agenda for the hearing. The failure to obtain a hearing on the more significant first day motions on May 1 should be viewed as a setback for Chrysler. 

Chrysler LLC – 50 Largest Unsecured Bankruptcy Creditors

[Update May 29, 2009: Please note that the following Largest Unsecured Creditor list is taken from the Chrysler LLC bankruptcy filing. Subsequently, Chrysler published a “Designated Supplier Contract” list with “Cure Costs”. This list bears no resemblance to the original largest unsecured creditor list. You can look at the subsequent list by clicking on the following link to the post “Chrysler LLC Bankruptcy – Supplier $1,000,000 Cure Cost Club“.]

Chrysler LLC has requested authority to file a consolidated list of the 50 largest unsecured creditors of the 25 Chrysler and affiliated Debtors (the “Top 50 List”) in lieu of a separate list for each of the Debtors. The Top 50 List is based on the Debtors’ books and records as of approximately April 30, 2009. The Top 50 List does not include: (1) persons who come within the definition of “insider”; or (2) secured creditors, unless the value of the collateral is such that the unsecured deficiency places the creditor among the holders of the 50 largest unsecured claims.

The amounts owed to each of the unsecured creditors is listed as trade debt. In fact, the list is a who’s who of Tier 1 suppliers.

The Top 50 List in order of size is:

Chrysler LLC Bankruptcy – Debtors and Petitions

4-30-2009 Chrysler LLC and 24 affiliated entities (“Debtors”) filed a petitions in Bankruptcy Court for the Southern District of New York for relief under chapter 11 of title 11 of the United States Code.  Contemporaneously with the filing of their petitions, the Debtors filed a motion requesting that the Court consolidate their chapter 11 cases for administrative purposes only.

The following are the names, case numbers and copies of the bankruptcy petitions.

Contech U.S., LLC Bankruptcy – 503(b)(9) Claim Bar Date and Procedures

For any supplier and other bankruptcy creditor in the bankruptcy of Contech U.S., LLC [1], timely and properly filing an administrative expense claim under 11 USC § 503(b)(9) may provide the only prospect for payment of any portion of the creditors prepetition claims. Click this link for an article on this site discussing 503(b)(9), including answers to the most common questions regarding making these claims.

Noble International-Two Debtors not Insolvent?

As discussed in a prior post on the bankruptcy of Noble International Ltd., the parent and 14 subsidiaries have filed for bankruptcy. We have stressed the need to carefully identify your customer.  We wanted to use the Noble International bankruptcy as a case study for point and were surprised to find that two debtors did not appear to be “insolvent” when they filed their Chapter 11 petitions.

Noble International, Ltd. Bankruptcy – Score: Subs In 14 – Subs Out 31

We constantly stress the importance for a bankruptcy creditor to confirm the identity of its client in bankruptcy (see our article “10 Questions a Commercial Bankruptcy Creditor Must Ask and Answer ASAP”). If there was ever a poster child for the need to identify your customer it is the bankruptcy of Noble International, Ltd.

Contech Confirms there will be No Money for Unsecureds

Contech U.S. LLC and two affiliates, MAG Contech, LLC and Contech, LLC filed bankruptcy in Michigan on January 30, 2009 – another victim of the automotive sector downturn. The most unique aspect of the case has been the willingness of 5 automotive customers (Delphi, Ford, BMW, Linamar and Automotive Components Holdings) to provide $7,200,000 DIP financing to keep Contech manufacturing components until a buyer can be found. For the suppliers to and other unsecured trade creditors of Contech, there never seemed to be much to try and salvage. This was confirmed in a March 26, 2009 filing by Contech.