6 Jun 2009

Chrysler sale approved

3:04 pm on 6 June 2009

The sale of bankrupt automaker Chrysler to a group including Italian carmaker Fiat and the United States government was upheld by a US appeals court on Friday.

However, the deal is expected to be appealed to the Supreme Court by a group of investors.

A three-judge panel of the US Court of Appeals for the Second Circuit stayed the closing of the sale until Monday afternoon, or until the Supreme Court decides whether to hear an appeal.

If the sale is allowed to close, a "new" Chrysler company will exit bankruptcy on Monday, reorganizing the automaker in less than 60 days as demanded by the White House.

Earlier this week, a bankruptcy court judge approved the sale of most of Chrysler to a group led by Fiat, a union-aligned trust and the governments of the United States and Canada.

The group agreed to pay $US2 billion to secured lenders, who are owed $US6.9 billion.