Friday, June 5, 2009
The decision on whether Chrysler can sell the bulk of its assets to a group led by Italy's Fiat heads to a federal appeals court in New York today.
The proposed sale is part of Chrysler's plan to emerge from bankruptcy protection.
The court will hear arguments from attorneys representing Chrysler LLC, Fiat Group SpA and a trio of Indiana state pension and construction funds.
The funds argue the deal unfairly favors the interests of the company's unsecured stakeholders ahead of those of secured debtholders such as themselves.
The appeals court halted the sale earlier this week, pending the Indiana state funds' appeal. Chrysler had hoped to close the sale by the end of this week.
Chrysler has maintained that the sale is its only hope of avoiding selling itself off piece by piece. If the sale doesn't close by June 15, Fiat has the option of pulling out of the deal.