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Court clears Chrysler to exit bankruptcy
 [Iran Press TV Latest] A US appeals court cleared the way for Chrysler to exit bankruptcy under an alliance with Italy's Fiat. A three-judge panel from the Second Circuit Court of Appeals upheld without comment a decision by a bankruptcy judge approving the US government-backed plan to create a new entity to buy the assets of the troubled US number three automaker. The panel allowed the opponents of the plan until 2000 GMT Monday to obtain any further delay from the US Supreme Court. The appeals court decision puts Chrysler on the verge of completing its quick exit from bankruptcy protection following a filing on April 30 in a plan backed by President Barack Obama's administration to tie the group to Fiat. A Chrysler spokesman said the company "welcomes the court's decision and appreciates the court's recognition of the need for a swift conclusion to this process so we can quickly start building the new car company." Chrysler has idled its factories and says it is losing 100 million dollars daily. Fiat, the only partner apparently able and willing to step in, has said it could walk away if the deal is not finalized by June 15. The emergency dismantling of Chrysler -- including the shutting down of hundreds of car dealerships -- and rebuilding of the company in partnership with Fiat is the first step in the government's attempts to save the auto industry from collapse. The creditors filing the appeal, holding USD 42m out of USD 6.9b of Chrysler debt, argued fundamental legal protections were ignored in a sale forced through by Washington. Posted by: Fred 2009-06-06 |
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