Chrysler prepares for bankruptcy court hearing

2009-05-29 17:41:43 (GMT) ( - Automotive News)

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Chrysler Headquarters at Auburn Hills

Fresno, California ( — Friday is judgment day for struggling automaker Chrysler LLC, as a judge will try to determine if it is in the best interest of the company and its frustrated stakeholders to sell off most of Chrysler to Italy’s Fiat Group SpA.

Robert Nardelli, the Auburn Hills, Mich.-based automaker’s departing chairman and chief executive, gave testimony in court Thursday stating that he anticipates the mandated U.S. regulatory approvals for the sale of the majority of the company’s assets to a Fiat-led group to be finalized by Friday, with international approvals soon to follow.

Following a lengthy, 3-hour court session, the hearing came to a close just before midnight, though it still remains unknown when testimony and arguments will be completed, allowing U.S. Judge Arthur Gonzalez to bring down his final verdict.

The hearing will recommence at 9 a.m. EDT Friday.

According to the Associated Press, “Even if Gonzalez does approve the sale, it’s likely that attorneys representing three Indiana state pension and construction funds, which hold Chrysler debt and are aggressively opposing the sale, will appeal the decision and force the company to postpone the closing. Fiat could back out if the deal doesn’t wrap up by June 15.” - Press Release Distribution Service


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