Judge OKs Chrysler's Steps Toward Sale To Fiat

The judge overseeing Chrysler LLC's Chapter 11 proceedings has ruled that the automaker may start taking steps toward selling most of its assets to Italy's Fiat Group. The ruling came late Tuesday after more than seven hours of testimony and legal arguments.

Copyright © 2009 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.


NPR's business news starts with Chrysler still inching towards a Fiat alliance.

(Soundbite of music)

MONTAGNE: Chrysler has cleared a major legal hurdle in the path towards reinventing itself. At a packed all-day court hearing yesterday in New York City, the judge overseeing Chrysler's bankruptcy ruled that the carmaker can go ahead and start selling its assets. Some lenders - mostly Chrysler investors who stand to lose out - argued against the entire proceeding. The judge overruled them, clearing the way for the fast track bankruptcy plan worked out by the Obama administration.

The plan involves selling Chrysler assets to a new entity held by Fiat, the U.S. and Canadian governments, and a health care entity linked to the UAW.

Copyright © 2009 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.



Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.