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Fri May 29, 2009
Michigan drops objections to Chrysler sale
Lansing, MI – Lansing, MI (AP) - Michigan is dropping objections to the sale of Chrysler LLC after the buyer agreed to assume Chrysler's workers' compensation liabilities. The settlement announced Friday averts a court fight.
The state had opposed the sale of Chrysler assets to Italian automaker Fiat, warning Fiat wouldn't assume Chrysler's workers' compensation liabilities.
Michigan Attorney General Mike Cox and Jack Nolish, director of Michigan's workers' compensation agency, say the agreement with "New Chrysler" protects benefits for injured workers.
There had been concerns Chrysler would be unable to make yearly $25 million payments. The state worried its Self-Insurers' Security Fund could become insolvent and leave eligible injured workers at larger companies without benefits.