Daimler, Chrysler Pension Truce Wins Approval

Law360 (June 8, 2009, 12:00 AM EDT) -- As Chrysler LLC prepares to once again change hands, the bankrupt auto giant has secured court approval of a deal with former parent Daimler AG in which the German automaker will forgive $2 billion in Chrysler debt and inject $600 million into Chrysler's ailing pension plans over the next two years.

The terms of the deal — negotiated in April between Daimler, Chrysler, current Chrysler owner Cerberus Capital Management LP and federal pension guarantor the Pension Benefit Guaranty Corp. — were approved by the U.S. Bankruptcy...
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