Vacating a temporary stay that was ordered, the U.S. Supreme Court has cleared the way for the sale of Chrysler’s prime assets to Italian automaker Fiat. The sale had been challenged by consumer, pension fund, and construction fund groups. The pension and construction fund groups claimed that the use of (Troubled Asset Relief Program) TARP funds to finance the bankruptcy was unconstitutional. The consumer groups challenged the sale on the basis that it would impair the right of consumers to pursue product liability claims.
The Bankruptcy Court for the Southern District of New York has also allowed Chrysler to sever contracts with 789 dealerships. This will mean that those dealerships will no longer be able to promote themselves as being a Chrysler authorized dealer for purposes of providing repair services.
Source: http://jurist.law.pitt.edu/paperchase/2009_06_10_indexarch.php#3922430819694760783
Tags: Bankruptcy, Chrysler, Fiat
