ON APRIL 30, 2009, CHRYSLER MOTORS LLC (CHRYSLER), the third largest automobile
manufacturer in the United States, filed for bankruptcy protection under Section 3634 of
Chapter 115 of the U.S. bankruptcy code in the Manhattan Bankruptcy Court along with its
24 wholly-owned U.S. subsidiaries. As part of its bankruptcy filing, Chrysler announced that
it would establish a global strategic alliance with Fiat SpA (Fiat).6 It would create a new company
in which Fiat would initially have a 20% stake, which would later be increased up to
35%. The Voluntary Employees’ Benefit Association (VEBA)7 would have a 55% stake in it
and the U.S. Treasury Department (U.S. Treasury) an 8% stake. The Canadian and Ontario
governments would have a combined 2% stake, with the Canadian government holding 1.33%
and the Ontario government holding the remaining 0.67% stake.