Fire sale Judge approves Chrysler-Fiat deal
Tuesday 02 June 2009
A judge in New York has approved the sale of most of Chrysler's operations to the Italian car maker Fiat, boosting hopes that the US company could emerge quickly from bankruptcy. The alliance with Fiat is the centrepiece of the Obama administration's "pre-packaged" restructuring of Chrysler, which it announced alongside the bankruptcy filing on 30 April.
At the time, many bankruptcy experts were sceptical that Chrysler could emerge from Chapter 11 insolvency in the 30 to 60 days that the President's team predicted, but challenges to key parts of the restructuring deal from Chrysler dealerships and bondholders have been swiftly dealt with by Arthur Gonzalez, the judge presiding over the bankruptcy court.
"Any material delay would result in substantial costs in several areas, including the amounts required to restart the operations, loss of skilled workers, loss of suppliers and dealers who could be forced to go out of business in the interim, and the erosion of consumer confidence," Judge Gonzalez said in his ruling approving the deal. "In addition, delay may vitiate several vital agreements negotiated amongst the debtors and various constituents."
Fiat will own 20 per cent of the new Chrysler when it emerges from Chapter 11 protection, and will help the historic US car maker to develop new, fuel-efficient vehicles. The alliance will also give Fiat access to Chrysler's US dealer network. However, three Indiana pension funds which invested in Chrysler debt have appealed against the judge's decision to approve the sale.
President Obama expressed optimism about the rest of the bankruptcy process, following the judge's ruling late on Sunday. "The sale transaction paves the way for the new Chrysler to successfully emerge from bankruptcy as a new, stronger, more competitive company for the future," he said.
- 1 'Fire at every person you see': Israeli soldiers reveal they were ordered to shoot to kill in Gaza – even if the targets may have been civilians
- 2 Italian police 'reveal' what Jesus looked like as a young boy
- 3 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
- 4 Garland shooting: Isis claims attack on Prophet Mohamed cartoon contest in Texas as its first action on US soil
- 5 Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
Syria's 'circle of hell': Aleppo residents describe children without heads, streets filled with blood and injuries never before witnessed by surgeons
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...