Indiana Secretary of State Todd Rokita’s Indiana Securities Division has finalized a consent agreement with Old Carco LLC, the company formerly known as Chrysler LLC, which has resulted in the return of $5.5 million in bonds to Tipton County. The bonds were returned this week after the agreement was accepted by the United States Bankruptcy Court for the Southern District of New York.
Tipton County issued the bonds to Chrysler in September of 2008 along with an equal amount to Getrag Transmission Manufacturing to finance infrastructure improvements to support a transmission plant that was to be a joint venture between the two companies. The day after the bonds were issued, Chrysler disclosed it could not make guarantees to Getrag necessary for the German company to secure funding for the project. In November 2008, Getrag filed for Chapter 11 bankruptcy protection and pulled out of the project, leaving the plant vacant.
“I’m pleased that by holding Chrysler accountable to the terms of this agreement we will be facilitating Tipton County’s recovery of these bonds, and that the county can finally move forward with efforts to ensure this commercial property fulfills its promise,” said Secretary Rokita. “This action ends a nearly tragic economic development saga, and will benefit Tipton County and the entire region as it moves forward with their business development and job creation efforts.”
In April 2009, the Indiana Securities Division filed an administrative complaint and alleged violations of the Indiana Securities Act against Chrysler, LLC. As a result of the finalized agreement, the Securities Division will dismiss the complaint. Secretary Rokita’s office also previously facilitated the return of $5.5 million in bonds that Tipton County had issued to Getrag.
“The Tipton County commissioners would like to express our sincere gratitude and thanks to Secretary Rokita and his staff for the many hours of time spent in working for the best interest of Tipton County,” said Tipton County Commissioner Jane Harper. “The bonds were returned to Tipton County and we can now use them as an incentive to offer to another company that may be interested in using the site.”
