Chrysler-Fiat deal continues

Posted: June 10, 2009 in Chrysler

What remains of the bankrupt automaker Chrysler will be sold to Fiat after the U.S. Supreme Court got out of the way of the deal.

The Supreme Court, which had temporarily held up the deal while it considered appeals by three Indiana state pension funds and several consumer groups, said in an order that the groups had not proven that the court needed to intervene.

Several news organizations reported that Chrysler and Fiat representatives were preparing the paperwork to conclude the deal. That’s when the U.S. government will wire the money to finance the sale, The New York Times reported on its Web site.

The plan to salvage Chrysler will remake the company into one owned 55 percent by a union pension trust, 20 percent owned by Fiat – a share that could grow to 35 percent – and the rest owned by the governments of the United States and Canada.

Also, a federal bankruptcy judge in New York refused to block Chrysler’s effort to pull the franchises of 789 dealers, including 11 in the Philadelphia area. Judge Arthur Gonzalez ordered the dealers to stop selling their remaining Chrysler-made vehicles immediately.

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