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.
US Will Test Infant Formula to See If Botulism Is Wider Risk 
One out of 10 Cars Sold in Europe Is Now Made by a Chinese Brand 
Why 2026 Is The Tipping Point for The Evolving Role of AI in Law and Claims 
Founder of Auto Parts Maker Charged With Fraud That Wiped Out Billions 
Want to stay up to date?
Get the latest insurance news
sent straight to your inbox.