U.S. Supreme Court delays Chrysler sale to Fiat

Supreme Court Justice Ruth Bader Ginsburg said in an order that the sale is "stayed pending further order." A federal appeals court in New York has earlier approved the sale, but gave opponents until 4 p.m. EDT Monday to try to get the Supreme Court to intervene. It was reported that Ginsburg could decide on her own whether to extend the delay or ask the full court to decide. It is unclear when she or the court will act. If the courts allow the sale to go through, Fiat would shake up management and change the culture of Chrysler, a senior Obama administration official was quoted as saying by reports on Monday. If Chrysler is liquidated, 155,000 workers would lose their jobs, and the U.S. economy would suffer a devastating impact, the company attorney said. The ailing U.S. automaker is seeking to leave its bad debts in bankruptcy, and leave with its good assets for the new tie-up with Fiat. Chrysler filed for Chapter 11 bankruptcy protection on April 30 and announced a partnership with Italian automaker Fiat. On June 1, Chrysler said it was selling some assets and operations to the newly formed company Chrysler Group LLC. Under the deal, Fiat will hold a 20 percent stake in the new company, with an option to increase this to 35 percent, and eventually to 51 percent. Chrysler faces a June 15 deadline, after which Fiat could walk away from the deal to take 20 percent of the company; Kazinform cites Xinhua. See www.cjinaview.cn for full version.