Chrysler Group has asked a U.S. Bankruptcy Court judge to prevent rejected dealers from suing the automaker in state courts to get their lost franchises back.
Old Carco, the operating entity for the Chrysler assets left behind in bankruptcy, asked the judge to stop lawsuits filed by 11 dealerships in state courts or administrative bodies. The suits want "to force the new Chrysler to continue to honor the very dealer agreements" the Bankruptcy Court previously allowed Chrysler to reject, the motion states.
The motion was filed Tuesday in the Bankruptcy Court in New York.
The document accuses the 11 dealerships, which it refers to as "noncompliant," of trying to do an "end run" around the bankruptcy process. It says the lawsuits assert that a state's motor vehicle statute "trumps the provisions of sections 362, 363 and 365 of the bankruptcy code."