Chrysler’s sale Justices gives Ok

WASHINGTON — The Supreme Court on Tuesday cleared the way for Chrysler LLC’s sale to Fiat, turning down a bid by opponents that included consumer groups and three Indiana pension plans.

The court rejected a plea to block the sale of most of Chrysler’s assets to the Italian automaker. Chrysler, Fiat and the Obama administration had warned that the high court’s intervention could have scuttled the sale.

A federal appeals court in New York had approved the sale, but gave opponents until Monday afternoon to try to get the Supreme Court to intervene.

Justice Ruth Bader Ginsburg ordered a temporary delay just before a 4 p.m. deadline Monday. A little more than 24 hours later, the court freed the automakers to complete their agreement.

The opponents include three Indiana pension plans, consumer groups and individuals with product-related lawsuits.

The court issued a brief, unsigned opinion explaining its action. To obtain a delay, or stay, someone must show that at least four of the nine justices find that the issue raised is serious enough to warrant hearing a full appeal and that a majority of the court will conclude the lower court decision was wrong.

"The applicants have not carried that burden,” the court said.

Chrysler has been working to complete the sale of its assets to Fiat before a June 15 deadline.


Some dealers fading
Earlier Tuesday, Chrysler returned to bankruptcy court to get approval to end 789 dealer franchises.
More than 25 attorneys representing hundreds of dealers from across the country opposed Chrysler’s request, arguing that little would be gained by ending the franchises. The company said the move was a necessary part of its plan to cut costs and quickly emerge from Chapter 11 bankruptcy.

Many of the dealers were selling the last cars on their lots and preparing to shut their doors for good at the end of the day.

Also Tuesday, attorneys said Chrysler will extend until Monday its program to help the affected dealers send any unsold vehicles to other dealerships.



by the associated press