Submitting his final order approving the sale of Chrysler's assets to Fiat, Judge Arthur Gonzalez shortened the usual 10-day period required before such a sale is permitted to four days, allowing the two automakers to complete the deal by Friday.
Chrysler's "good" assets will be sold for $2 billion to a consortiumthat includes Fiat, a union-controlled trust, and U.S. and Canadian governments. The rest of Chrysler's assets will be liquidated to pay off claims.
More than340 objections were filed against the sale of Chrysler's assets to Fiat, the most-publicized of which came from three Indiana pension funds that held Chrysler loans. The lawyer representing the funds has said the sale turns the priority of repayment upside down.
"This is about much more than the Chrysler Corp.; it's about whether secured creditors have the same standing that they've had for hundreds of years," said Indiana treasurer Richard Mourdock.
Attorneys for Chrysler have asked that appeals of the sale be brought before the Court of Appeals for the Second Circuit, rather than the District Court, to speed up the appeals process and make sure the sale can be completed beforethe June 15 deadline.