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May 22, 2009

MADIGAN FILES OBJECTION TO CHRYSLER SALE ON BEHALF OF WORKERS' COMPENSATION FUND

State Says Current Deal Doesn't Provide for Chrysler's Workers' Compensation Liabilities

Chicago — Attorney General Lisa Madigan today said she has filed an objection to the terms of Chrysler's pending sale to Fiat in federal bankruptcy court on behalf of the Illinois Workers' Compensation Commission (IWCC) and the Illinois Self-Insurers Advisory Board (ISIAB).

"In filing this motion, we are working to protect the safety net for Chrysler employees and ensure that sufficient funds are available to pay for any potential workers' compensation claims," Madigan said.

According to Madigan's filing, IWCC and ISIAB oppose any sale that does not leave sufficient assets to compensate Chrysler's injured Illinois workers. Under the current terms of the sale, Chrysler may not retain sufficient assets to ensure payment of workers' compensation benefits to its injured workers, and Fiat would not assume responsibility for the payment of workers' compensation benefits. If Chrysler fails to meet its workers' compensation obligations, the Illinois Self-Insurers Security Fund would be required to assume control and pay for the claims.

Attorneys General in Michigan and Ohio also have filed objections to the pending sale.

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