Chrysler-Fiat plan before judge
Written on May 30, 2009
NEW YORK — Chrysler tried to fend off hundreds of objections Wednesday to its plan to sell most of its assets to Italian automaker Fiat, hoping in a marathon court session to save itself from liquidation.
If Judge Arthur Gonzalez approves the sale, Chrysler could emerge from bankruptcy within weeks. Gonzalez adjourned the hearing until today and anticipated it could stretch through Friday.
Attorneys for Chrysler LLC say unloading the assets to a group led by Italy’s Fiat Group SpA is the company’s only hope to avoid selling itself off piece by piece low cost car insurance. Fiat could back out if the deal doesn’t close by June 15.
As part of the deal, Chrysler would close eight of its plants, including two in Fenton. Chrysler’s attorneys say a leaner Chrysler could shift more easily to smaller, more fuel-efficient cars. But many car dealers, debtholders and former employees say they are being steamrolled by the bankruptcy.
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