Chrysler may exit bankruptcy by Thursday

ERJ staff report (AN)

By Bradfors Wernle, Automotive News.

Detroit, Michigan -- Chrysler LLC, with a boost from President Obama, may emerge from bankruptcy as soon as Thursday.

Shawn Morgan, a Chrysler spokesperson, said the automaker is asking US Bankruptcy Judge Arthur Gonzalez to waive a 10-day statutory stay so the sale can be closed as quickly as possible.

"We are filing a request this afternoon to close the sale as early as Thursday afternoon," she said. The company wants a hearing on its motion "between now and Wednesday."

Gonzalez approved the sale of the most of Chrysler's assets to a group headed by Fiat S.p.A. late Sunday evening. There is an automatic 10-day period between court approval of the sale and closing of the transaction, Morgan said.

Closing of the deal paves the way for the new company, Chrysler Group LLC, to start operations under Fiat management.

President Barack Obama said earlier today Chrysler "will emerge from bankruptcy in a few days."

"What the completion of this alliance means is that tens of thousands of jobs that will have been lost will now be saved," he said in a televised address. Chrysler's quick exit vindicated the administration's approach in the face of critics who said a "quick, surgical bankruptcy was wrong," Obama said.

The president made the announcement while outlining the course for Chrysler's bigger rival, General Motors, during its own bankruptcy, which started today.

In an e-mail to employees before Obama's statement, Chrysler CEO Bob Nardelli said: "Chrysler can look forward to quickly developing a strong and synergistic partnership with Fiat. Work is under way to develop the next generation of environmentally fuel-efficient, high-quality vehicles.

"While this has been an extremely difficult chapter in Chrysler's history for all involved, the new company and its customers, employees and suppliers can now begin a fresh page."

In announcing Chrysler's bankruptcy April 30, Obama said the process would take 30 to 60 days. He noted today that the court approval came "just 31 days after Chrysler's Chapter 11 bankruptcy filing.''

From Automotive News (A Crain publication)