Monday, June 1, 2009
A federal bankruptcy judge has approved the sale of most of Chrysler's assets to Fiat, clearing the way for the American automaker to exit court protection shortly.
Judge Arthur Gonzalez said in a court filing Sunday that he approved the sale, the major piece of a plan orchestrated by a federal auto task force.
The plan gives a 55% stake of the new company to a union-run trust for retirees, a 20% stake to Fiat that can ultimately grow to 35% and smaller stakes to the U.S. and Canadian governments.
Chrysler LLC was forced into court protection on April 30.
The sale to Fiat means Chrysler could be out of bankruptcy within the government's original timeframe of 30 to 60 days.