Chrysler sale to Fiat given go-ahead

Posted on Jul 24, 2009 by

’s sale to looks to
be on track after an appeal to block the deal was dismissed by the US Supreme
Court.

Fiat plans to buy assets from the
bankrupt US carmaker, but three pension and construction funds in the state of
Indiana applied to block the sale. They hold some $42 million of Chrysler’s
$6.9 billion in secured loans and felt the proposed sale went against
bankruptcy law.

But the Supreme Court disagreed
and the sale to Fiat can now go ahead. The deal would bring Chrysler out of
bankruptcy and give the Italian firm a 20% stake in the new firm, with 68%
owned by a union trust and 12% by the US and Canadian governments.

The case could set a precedent
for General Motors, which has also filed for bankruptcy protection, as Chrysler
did in April.

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The case could set a precedent
for General Motors, which has also filed for bankruptcy protection, as Chrysler
did in April.

Image Gallery

 

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