Chrysler sale heading to U.S. Court of Appeals
Tue Jun 2, 2009 9:33am EDT
NEW YORK, June 2 (Reuters) - Chrysler's sale of most of its assets to a group
led by Italian automaker Fiat (FIA.MI: Quote, Profile, Research, Stock Buzz) will be appealed
to the U.S. Court of Appeals for the Second Circuit, bypassing the lower
District Court, a bankruptcy court judged ordered on Tuesday.
The bankruptcy court judge, Arthur Gonzalez, approved the sale on Monday.
Unless blocked on appeal, the sale becomes effective on Friday, bringing a "New
Chrysler" out of bankruptcy.
An attorney representing three pension funds from Indiana has said he will
appeal the approval of the sale, which he said violates the traditional priority
of repayment by favoring unsecured creditors over secured creditors. (Reporting
by Tom Hals; Editing by Derek Caney)
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