Federal bankruptcy judge approves sale of Chrysler assets to Fiat Andrew Morgan at 8:33 AM ET
[JURIST] A federal bankruptcy judge on Sunday approved the sale of most of the assets currently held by Chrysler Group to Italian automaker Fiat S.p.A. [corporate websites]. Judge Arthur Gonzales of the US Bankruptcy Court for the Southern District of New York [official website] approved a bankruptcy plan that would transfer 55 percent of Chrysler to a United Auto Workers (UAW) [union website] retiree trust and 20 percent to Fiat, with the US and Canadian governments each retaining a minority share. The UAW trust would take over responsibility [agreement, PDF] for retiree health care in exchange for a larger ownership stake in the restructured Chrysler. A group of Indiana pension funds that acquired $42.5 million in secured Chrysler debt last year said they would appeal [WP report] the decision because it is unfairly biased toward unsecured creditors like UAW.
Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.