NEW YORK (AP) -- The decision on whether Chrysler can sell the bulk of its assets to a group led by Italy's Fiat as part of its plan to emerge from bankruptcy protection heads to a federal appeals court today.
The 2nd U.S. Circuit Court of Appeals is to hear arguments this afternoon from attorneys representing Chrysler LLC, Fiat Group SpA and a trio of Indiana state pension and construction funds. Indiana's treasurer says the deal unfairly favors the interests of the company's unsecured stakeholders ahead of those of secured debtholders such as themselves.
Late Tuesday, the appeals court halted the sale pending the Indiana state funds' appeal. Chrysler had hoped to close the sale by the end of this week.