Chrysler Estate's Suit Over Daimler Sale Booted

Law360, New York (July 27, 2010, 7:28 PM EDT) -- A bankruptcy judge has thrown out a suit initially brought by creditors of Chrysler LLC castoff Old Carco LLC that alleged Daimler AG stripped valuable assets from the automaker before handing it off to private equity firm Cerberus Capital Management LP.

Judge Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York on Tuesday dismissed the adversary suit, but allowed the Old Carco liquidation trust, which took over the creditors’ case seeking billions of dollars in damages, 60 days to amend some...
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