Fiat-Chrysler Deal Proceeding: Supreme Court clears way

The Supreme Court late Tuesday ruled that the challengers to the legality of the bankruptcy court mandated sale of Chrysler LLC to Fiat S.p.A. had failed to meet their burden to justify delaying the sale. Fiat leads a group that includes the United Auto Workers trust and the governments of the U.S. and Canada.

The Court stressed that the ruling was "based on the record and proceedings in the case alone" and did not address the merits of the legal issues.

A White House official said, "We are gratified that not a single court that reviewed this matter, including the U.S. Supreme Court, found any fault whatsoever with the handling of this matter by either Chrysler or the U.S. government."

The temporary stay of the sale granted Monday by Justice Ruth Bader Ginsburg was lifted. Three Indiana state pension funds and several investor groups had petitioned the Supreme Court to delay the sale and hear their arguments against it.

There was much hand wringing among members of the Obama administration and Chrysler executives, as they pointed out that an extended delay in the sale could lead to the company's liquidation and subsequent loss of some 38,000 jobs. Chrysler's daily losses are now approaching $100m. Now the sale can be closed by the Monday, June 15, deadline. The company filed for Chapter 11 bankruptcy protection on April 30.