Michigan is objecting to the sale of Chrysler LLC assets to Italian automaker Fiat, claiming the new company won’t meet obligations to a state workers’ compensation fund.
State Attorney General Mike Cox filed papers in bankruptcy court in New York on behalf of the State of Michigan Workers’ Compensation Fund and Funds Administration.
The filing says that could leave Chrysler unable to make yearly $25 million payments. The state worries its Self-Insurers’ Security Fund could become insolvent and leave all eligible injured workers at larger companies without benefits.
Judge Arthur Gonzales said the objection could be resolved later if and when he is asked to rule on a final sale motion.
The filing says Chrysler can’t avoid regulatory requirements that apply to all Michigan employers.
Was this article valuable?
Here are more articles you may enjoy.
SeatGeek Offered ‘Retaliation Insurance’ to Win Ticketmaster Clients 
Reinsurers Triple Ship Insurance Costs After US Torpedo Attack 
Live Nation Reaches DOJ Settlement in Antitrust Case 
Insurance Clubs to Halt Ship War-Risk Cover in Persian Gulf 
Want to stay up to date?
Get the latest insurance news
sent straight to your inbox.