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Chrysler Heads Back To Bankruptcy Court Today

By: Associated Press Email
By: Associated Press Email

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Friday, May 29, 2009

It'll take at least one more day for a judge to determine whether it's in the best interests of Chrysler and its stakeholders to sell most of the company to Italy's Fiat Group SpA.

Chrysler LLC's departing chairman and chief executive, Robert Nardelli, testified in court yesterday that he expects the required U.S. regulatory approvals for the sale of the bulk of Chrysler's assets to a Fiat-led group to be in place by today, with international approvals to come later.

But after a nearly 13-hour marathon session, the hearing was adjourned shortly before midnight, and it remains unclear when testimony and arguments related to the sale will wrap up and allow U.S. Judge Arthur Gonzalez to rule.

The hearing will resume this morning.

Even if Gonzalez does approve the sale, it's likely that attorneys representing three Indiana state pension and construction funds, which hold Chrysler debt and are aggressively opposing the sale, will appeal the decision. That would force the company to postpone the closing. Fiat could back out if the deal doesn't wrap up by June 15.


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