Chrysler Could Soon Bankruptcy Reorganization

Chrysler Could Soon Bankruptcy Reorganization

http://online.wsj.com/article/SB124384378712871505.html

Barely after a month of seeking chapter 11 bankruptcy protection, the automobile major Chrsyler LLC is showing signals of coming out of bankruptcy reorganization. A bankruptcy court judge has rejected the arguments of company dealers and creditors and said that the deal with Fiat was the only viable alternative to liquidation. Some dealers and creditors including pension funds are opposing the auto major’s proposed assets sale to a group led by Italy’s Fiat. The quick passage through the bankruptcy court will enable the formation of a new company Chrsyler Group LLC, in which the US government will hold a major stake. However, some assets of the automobile company are likely to remain under bankruptcy for a long time. The role of the US government which has overseen the whole process has been quite important.