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Friday, 01 May 2009 14:24

Chrysler Name to Remain Intact

Allpar is reporting that the Chrysler name will remain at the top of the new company formed out of Chrysler LLC’s “good assets.” While the working names NewCo and OldCo have been used, along with others, Fiat’s press release on the situation noted:

At closing of the transaction, NewCo will assume the corporate name of Chrysler and become the owner of substantially all the Chrysler’s business without certain debts and liabilities.

They also were more specific about the VEBA’s share of the equity:

Similarly, at closing the Voluntary Employee Benefit Association (VEBA) will be issued an equity interest equal to approximately 55% on a fully diluted basis of Chrysler. Such equity interest will be administered by the U.S. Treasury. UST and the Canadian Government will collectively hold the remaining 10% equity interest (on a fully diluted basis).

Governance was addressed more specifically as well:

The new Chrysler will be managed by a board of directors consisting of nine directors: three directors will be appointed by Fiat. One of Fiat’s appointees must satisfy the criteria for independence under the New York Stock Exchange listing rules. VEBA and the Government of Canada will have the right to appoint one Director respectively. U.S. Treasury will have the right to make the initial appointment of four directors (three of whom must be independent).

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