Chrysler and Fiat Deal Runs into Roadblock
June 5, 2009 by Stephen Kersey
Filed under Business
Chrysler is all set to sell most of its assets to Fiat and wanted to complete the deal prior to this weekend. However, that’s not happening after the deal between the two companies ran into a roadblock.
A threesome of Indiana construction and pension funds will fight the deal in a court of appeals on Friday. The three funds believe that the deal between Chrysler and Fiat is unfair in favor of unsecured stakeholders over secured debtholders.
The three Indiana funds in question are the Major Moves Construction Fund, the Indiana Teacher’s Retirement Fund and the Indiana State Pension Fund.
While the three funds will get their day in court, legal experts believe there’s virtually no chance that the deal between Chrysler and Fiat can be stopped at this point. Fiat, the automaker based in Italy, is virtually guaranteed to get a chance to turn around Chrysler.
President Barack Obama has said that he hopes that Chrysler can complete their bankruptcy proceedings in 60 days. Completing the sale to Fiat is one of the big obstacles that must be completed to meet that goal.
Fiat trying to purchase Chrysler (Image: Flickr)
