Judge to rule by Monday on sale of Chrysler assets
NEW YORK -- A bankruptcy judge said Friday that he will rule by Monday on whether Chrysler can go forward with its plan to sell most of the company to a group headed by Italy's Fiat and take a big step toward its goal of a speedy exit from Chapter 11.
The judge's Friday evening announcement came after 11 hours of testimony and arguments Friday that followed marathon sessions the two previous days, during which everyone from the automaker's outgoing chief executive to dealers slated to lose their franchises took the stand.
Gonzalez is widely expected to approve the sale but it's likely that attorneys for three Indiana state pension and construction funds, which have aggressively opposed the deal, will appeal the decision and possibly force Chrysler to further postpone the deal's closing.
Chrysler claims that any substantial delay could push Fiat to back out of the deal, since the Italian automaker has set a deadline of June 15 to wrap up a transaction.
Attorneys for Auburn Hills, Mich.-based Chrysler say that with the help of Fiat and its technology, a leaner Chrysler could shift more easily to building smaller, more fuel-efficient cars.
If the sale ultimately goes through, Chrysler could emerge from Chapter 11 bankruptcy protection within weeks, defying observers who said that the company could linger under court oversight for years. Chrysler filed for Chapter 11 on April 30.
Chrysler and other supporters of the sale argued during closing arguments on Friday that the automaker had to make a quick choice between completing a deal with Fiat with the government's financial help, or shutting down and selling itself off in pieces.
Corinne Ball, an attorney for Chrysler, said that in order to make the sale happen, sacrifices needed to be made by everyone involved, including the company's workers, dealers and secured debt holders.
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