Monday, June 8, 2009

Hold on a second, Chrysler

Whoa, Nelly. That agreement for Fiat to buy Chrysler isn't such a done deal after all. On Monday, the United States Supreme Court delayed the purchase of Chrysler until a hearing can be held on the proposed sale. Three Indiana pension and construction funds asked for the delay.

Chrysler, which is in bankruptcy, wants Fiat to buy it as part of its way out of Chapter 11. The delay could be complicating because Fiat has the option of pulling out of the agreement if the sale does not close by June 15. That would likely force Chrysler into liquidation, and that wouldn't be good for anyone. The federal government is backing the sale to Fiat.

The delay, which was authorized by Supreme Court Justice Ruth Bader Ginsburg, is only expected to be temporary. We'll see how this plays out. There's a lot riding on the sale to Fiat.

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