Treasury Balks At $33M Fees In Old Carco Ch. 11

Law360, New York (October 15, 2009, 3:19 PM EDT) -- The U.S. Treasury is haggling over $33 million in professional fees in the Old Carco LLC liquidation, claiming the firms are not entitled to payment for services outside the wind-down — especially as the cast-off Chrysler entity has not repaid the U.S. government's $3.8 billion loan.

On Wednesday the Treasury objected to the first interim fee applications from firms working on Carco’s Chapter 11 case, reminding Judge Arthur J. Gonzalez of the U.S. Bankruptcy Court for the District of New York that the $260 million wind-down...
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