General Question

Mamradpivo's avatar

Why did Chrysler file for bankruptcy in New York?

Asked by Mamradpivo (9655points) April 30th, 2009

Aren’t they based in Michigan? Is there not a federal court in Michigan? I’m actually curious.

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5 Answers

MrKnowItAll's avatar

They own more politicians in New York

Kiev749's avatar

They want it to go as fast as they can, the securities and exchanges commission is based in New York.

hiphiphopflipflapflop's avatar

Corporations may be incorporated in a different location than where their headquarters is. Delaware is particularly popular for some legal reasons. I haven’t been able to determine if Chrysler LLC was incorporated in NY. However, the majority shareholder of Chrysler, Cerberus Capital Management, is based in NYC.

_bob's avatar

@hiphiphopflipflapflop Chrysler was incorporated in Delaware.

jrpowell's avatar

@hiphiphopflipflapflop :: Delaware is popular since they don’t (maybe this has changed) regulate caps on interest rates of loans. Most credit card companies incorporate in Delaware since the law only applies to the state the company is based in. Capital One couldn’t charge a 30% interest rate if they were based in Oregon. But they can in Delaware.

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