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Chrysler Sale To Fiat Gets US Supreme Court Clearance

ABR Staff Writer Published 11 June 2009

The Supreme Court of US has declined to extend a stay on the US government-backed sale of Chrysler assets to Fiat, thus clearing the way for the deal to close.

The court rejected a request to delay the deal, set forth by Indiana pension funds and other opponents of the transaction. 

In order to close the sale, $2 billion of Federal fund must be transferred to Chrysler's creditors, and the wire transfer deadline had already passed by the time the high court cleared the deal - as quoted in Reuters.

The court’s decision would let Chrysler-Fiat deal to go ahead, permitting Chrysler to re-emerge as a competitive automaker. Chrysler is seeking to leave its bad debts in bankruptcy, and move ahead with its good assets for the latest tie-up with Fiat. 

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