re: #1223 quickjustice

In bankruptcy, the debtor corporation has the right to reject executory contracts, including dealership contracts. The dealerships, in turn, have a claim against the bankrupt corporation for damages suffered as a consequence of the rejection. They’re unlikely to collect 100% of the amount of their claims, however.

Rejection is supposed to be of contracts that aren’t profitable for the debtor. If Chrysler is rejecting contracts with profitable dealerships, I suspect political motives.

Bankruptcy sucks on many levels and lots of people are hurt from creditors to the guy that works at the dealers. I have no idea what “political” motives Chrysler would have though.