Chrysler LLC has filed 21 first day motions and the Affidavit of Ronald E. Kolka in Support. The motions include one critical vendor motion to authorize payment of certain pre-petition claims of suppliers (Item 16). (Click this link for a follow up posts on the Chrysler first day motions) The first day motions are:
Bankruptcy Cases of Interest to Suppliers, Landlords, Lessors, Bankruptcy Creditors
Posts and discussion of recent bankruptcy cases of interest from a supplier, commercial landlord, equipment lessor or other unsecured creditor standpoint.
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.
»» Continue reading about the statistical information in the Chapter 11 petitions
Noble International – No Supplier Breadcrumbs in First Day Motions
The bankruptcy of another substantial automotive supplier (the fifth in 2009) came with no first day motions that might help the supplier base. However, General Motors Corporation, Ford Motor Company and Chrysler, LLC once more have stepped up with DIP financing to keep a supplier operating while the parts are resourced.
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.
»» Continue reading about customer identification importance in Noble International bankruptcy
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.
Fluid Routing Solutions’ Purchaser Takes Automakers Off List
We discussed in a prior post the completion of the auction and bankruptcy court approval of sale of assets to an affiliate of Fluid Routing Solutions. Despite its success in getting the sale approved, Fluid Routing Solutions was unable to obtain the concurrence of its automaker customers to the Proposed Sale Order. Fluid Routing Solutions advised the bankruptcy court in submitting the Proposed Sale Order to the bankruptcy court that Toyota, Chrysler, Ford and General Motors (the “Automaker Customers”) provided comments to the proposed order that were “wholly inconsistent with, and went far beyond, the requirements of the Agreement”.
Fluid Routing Solutions – Auction Over, Asset Sale Approved
On March 26, 2009, 48 days after the Chapter 11 filing, the sale of the fluid routing business and assets of Fluid Routing Solutions was approved. The winning bidder a/k/a the only bidder was FRS Holding Corp., (“FRS Deux”) who was the “stalking horse bidder” and an admitted “affiliate of an insider of the Debtors” and affiliate of the DIP lender, Sun Fluid Routing Finance, LLC (“Sun”). The purchase price is $11 million “less Cure Amounts less Prorated Taxes, minus/plus the Closing Net Assets Shortfall/Surplus.”