May 21, 2010
Recently Received Documents
Regarding Bankruptcy Claims
Many retirees received one, or several identical, mailings
from the Bankruptcy Court on or about May 11th. Many are concerned about
what they received and what they should do. The following statement was
received from NCRO's Attorney, Trent Cornell, to help claimants understand
what is contained in this document, and what it means in general:
The
Notice you received on May 11th was to advise all people who filed a
Proof of Claim that the Second Amended Joint Plan of Liquidation was
approved by the Court on April 23, 2010. As a result, Old Carco
"emerged" from bankruptcy on April 30, 2010. Practically, this
means that the remaining assets and liabilities of Old Carco were
transferred over to what is called the Liquidation Trust. The
Liquidation Trust, including through the Litigation Manager, is
responsible for selling off any remaining assets held by Old Carco
and to supervise prosecution of any claims Old Carco had against any
other parties, including the lawsuit pending against Daimler. From
the perspective of the Unsecured Creditors the confirmation of the
Second Amended Joint Plan of Liquidation confirms that the only
possibility of any payment on their claims is if the Daimler
litigation yields over $25 million. If there is anything less than
$25 million recovered in that lawsuit then that money will go to the
Federal Government. This was a condition given by the Federal
Government to release their superior position as a secured creditor
over the unsecured creditors. It is important to remember that any
funds recovered above the $25 million amount will be shared equally
among all unsecured creditors who have valid claims against Old
Carco. Pending claims against Old Carco--as opposed to "valid"
claims--are believed to be in excess of $4 billion. The process of
determining what claims are "valid" has been ongoing in an
organizational fashion (i.e. to put claims into similar classes) and
to seek the Court's voidance of claims that are not properly against
Old Carco as a party or that are duplicative. We have been advised
that Old Carco is not seeking further determination on claim
validity unless it appears that there will be claims available from
the Daimler lawsuit above $25 million.
The
Daimler litigation is in its early stages and could possibly take
months, or more likely, years to resolve; if they are successful.
The NCRO will continue to monitor the Daimler litigation and will
post updates as we learn additional information.
Contingency Action Fund
To NCRO Members, Chrysler Salaried Retirees
and other interested parties:
Your financial support is needed
to establish and build the Contingency Action Fund (CAF). The CAF is being
established to pay for legal expenses, legislative work associated with
protecting retirement health care, and pension benefits and travel to the court
location in New York. All Chrysler salaried retirees stand to lose tens of
thousands to hundreds of thousands of dollars in retirement entitlements if we
do not express our rights in the courts and legislature.
To accomplish this we are asking
you to contribute a minimum of $75 to the CAF. Don’t expect the next guy to
support this fund and pay for these costs! It’s up to you! $75 (or more if you
can). This is a very small price to pay to defend your income and healthcare
expenses, especially if you compare it to your other "insurance" costs. It could
potentially cost hundreds of thousands of dollars to have representation in the
courts and legislature both during bankruptcy and post bankruptcy.
The CAF has been established to
pay for these costs. As an individual we cannot afford to be properly
represented but as a group we can stand tall and be counted on to protect our
futures.
Contributions to the CAF are
not tax deductible.
If you want to donate and pay by
check, please note the following:
make check payable to
"NCRO" or "National Chrysler Retirement Organization"
indicate in the check's memo
space "CAF contribution" or "Contingency Action Fund contribution"
indicate in the check's memo
space the NCRO member's name.
do not combine this contribution
with any other payment (such as breakfast meeting ticket, dues, etc) on the same
check or paypal payment.
Mail checks to:
NCRO
P.O.Box 174
Washington Twp, MI 48094
If you would like to pay by credit card,
please enter your name and the amount below and click on the PAY NOW icon.
Thanks!
Your NCRO Leadership Team
Please direct all questions or comments to
NChryslerRO@ncro.org
CHRYSLER BANKRUPTCY - IN THE NEWS
May 12, 2010
A hearing was held to approve of the plan to liquidate the assets of the Old Chrysler.
This hearing was delayed several times to work out objections resulting in the April 21st hearing.
There was strong approval of the plan by the creditor classes and the Federal Government.
Approximately 98% of the claimants voted to approve the bankruptcy plan, leading to its approval by the judge. Continued here ==> April 21st hearing bankruptcy plan confirmation
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