This excerpt taken from the AN 10-K filed Feb 17, 2010.
Chrysler and General Motors Bankruptcies
On April 30, 2009, Chrysler and several of its affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (the Bankruptcy Code). In connection with the bankruptcy, Chrysler filed, and the bankruptcy court approved, a dealer consolidation plan to close approximately 789 dealerships, including seven of our Chrysler dealerships. The bankruptcy court also approved the sale of certain Chrysler assets to a new company, Chrysler Group LLC, that will operate the reorganized Chrysler business. On June 10, 2009, Chrysler completed the sale, and under the terms approved by the bankruptcy court, the autoworkers union retirement health care trust received approximately 55% of the equity in the new company, Fiat approximately 20% (Fiats equity interest will increase in increments by up to a total of 35% in the event that certain milestones are achieved), the U.S. Treasury approximately 8%, and the government of Canada approximately 2%. Chrysler Group LLC assumed our remaining Chrysler franchise agreements under which we will continue to operate our remaining Chrysler dealerships that were not terminated in the bankruptcy. As of December 31, 2009, we had nine Chrysler dealerships.
On June 1, 2009, General Motors and several of its affiliates also filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. In connection with the bankruptcy, we entered into wind-down agreements with General Motors pursuant to which we agreed to close four of our dealerships by October 2010 in exchange for certain wind-down payments. At the same time, we entered into participation agreements under which our remaining General Motors dealerships will continue to operate as franchisees of the new General Motors formed as a result of the bankruptcy. Certain of our dealerships with multiple General Motors franchises entered into a participation agreement as to certain franchises and a wind-down agreement as to other franchises (such as Pontiac, which General Motors is discontinuing as part of the bankruptcy). On July 5, 2009, the bankruptcy court approved General Motors plan to sell certain assets to a new company, General Motors Company, that will operate the reorganized General Motors business, and, on July 10, 2009, General Motors completed the sale. Under the terms approved by the bankruptcy court, the U.S. Treasury received approximately 61% of the equity in the new company, the autoworkers union retirement health care trust approximately 17%, the governments of Canada and Ontario approximately 12%, and the old General Motors bondholders approximately 10%. During the third quarter of 2009, we closed all four General Motors dealerships referenced above. As of December 31, 2009, we had 36 General Motors dealerships.
The operating results of the Chrysler and General Motors dealerships that were closed in connection with the bankruptcies were not material to our Consolidated Financial Statements. See Discontinued Operations below for a discussion of estimated losses associated with the Chrysler and General Motors bankruptcies that we recorded in discontinued operations.