Judge gives Chrysler approval for quick sale

Chrysler has received the greenlight to review and accept bids for a potential sale – of course, we don’t expect any other bids coming in other than the good ol’ Italian automaker Fiat SpA. U.S. Bankruptcy Judge Arthur Gonzalez approved the process giving any bidder until May 20 to put in a bid worth at least $2.1 billion. Gonzalez said that the court will consider confirming the sale on May 27.

The move allows Chrysler to overcome a major obstacle to emerge from bankruptcy within 30 to 60 days.

“We’re at the limit here on timing,” Corinne Ball, Chrysler’s lead bankruptcy attorney told reporters.  She said that Chrysler’s value is going down by “hundreds of millions of dollars everyday.”

There was some backlash from debt holders who are calling the sale illegal. Gonzalez has reportedly denied a request by debt owners to keep their identities secret.

– By: Omar Rana

Source: Free Press