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6/10/2009

Boston Globe: The Showrooms Go Dark

Houston partner Billy Donley was quoted in a June 10, 2009, Boston Globe article, "The Showrooms Go Dark."

According to the article, 12 dealerships in Massachusetts are among the 789 Chrysler dealerships nationwide that the troubled car company is seeking court permission to dissolve partnerships with. Chrysler, which has taken $4 billion in federal loans, has been in bankruptcy since April 30. Chrysler officials have said their aim is to hold on to the best-performing dealers and close under-performers. 

Some of the dealerships have attempted to fight Chrysler in court, but a bankruptcy judge recently refused to stop the automaker's moves to streamline. "I don't think they're going to have any recourse beyond this bankruptcy court's ruling," said Donley. "I believe the bankruptcy ruling will trump the state laws that would be used to protect the dealer."