The temporary hold that Justice Ruth Bader Ginsburg put on the sale of most Chrysler assets to Fiat is no more. The full US Supreme Court has declined to hear the challenge to the deal from some Indiana pension funds. Meanwhile, many Chrysler dealers had their last day as Chrysler dealers.
Opponents of the Chrysler reorganization plan, who said it violated the US Bankruptcy Code, failed at every level. The Obama Administration, which brokered the deal, claimed victory.
“We are gratified that not a single court that reviewed this matter, including the US Supreme (Court), found any fault whatsoever with the handling of this matter by either Chrysler or the US government. We are delighted that the Chrysler-Fiat alliance can now go forward, allowing Chrysler to re-emerge as a competitive and viable automaker,” said White House spokeswoman Amy Brundage.
Also on Tuesday, US Bankruptcy Judge Arthur Gonzalez approved Chrysler’s plan to immediately close 789 of some 3,200 dealerships. Those dealers are no longer permitted to sell new Chrysler vehicles with warranties or be eligible for Chrysler sales incentives. The company said, however, that it would give those closed dealers until June 15th to sell their existing vehicle inventories to other dealers.