Fear and Greed Blog

I was under the impression that the lemon law issue in the Chrysler bankruptcy was resolved after reading the LA Times article of May 16th that I discussed in my last post. Apparently, I was wrong.

Today there were a number of filings on the Chrysler docket (213 by my count - it's up to 1,255 items!). Included in those filings were an objection by a group of lemon law claimants (Docket 1092) and another by Sergei Lemberg (an attorney quoted in the LA Times article) on behalf of another group of lemon law claimants (Docket 1201).

Based on my readings of these filings, there may have been more confusion at Chrysler than I thought. Apparently there was more than one person telling claimants that they had become unsecured creditors in the bankruptcy. There appears to be some suspicion as to whether Chrysler intends to follow through on the statements that they made to the LA Times in the May 16th article.

I wouldn't expect this to take up too much of the Court's time, but Judge Gonzalez will probably not be pleased, given that he had issued orders allowing these payments.

I guess we'll have to see what happens.