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Wednesday, June 03, 2009
Courts - More on "Judge Moves Appeal of Chrysler Sale to 2nd Circuit" [Updated]
Updating this ILB entry from yesterday, Tomoeh Murakami Tse of the Washington Post reports today in a story that begins:
NEW YORK, June 3 -- A federal appeals court agreed late Tuesday night to hear an appeal from a group of lenders seeking to block the sale of Chrysler's assets, a move that could delay the automaker's exit from bankruptcy proceedings.[Updated at 3:15 PM] See this story from Bloomberg News for more on the scheduling.The U.S. Court of Appeals for the Second Circuit accepted the appeal from a coalition of Indiana pension funds that has sought to block the sale of most of Chrysler's assets to a group led by Italian automaker Fiat, according to Chris Conner, spokesman for Indiana State Treasurer's Office.
A hearing is scheduled for Friday, Conner said. * * *
The appeal throws an element of uncertainty into the Obama administration's carefully orchestrated plan to speed the ailing automaker through bankruptcy court.
Chrysler won approval for its reorganization late Sunday night, when U.S. Bankruptcy Judge Arthur J. Gonzalez set aside the objections of lenders and dealers and ruled in favor of the government plan, just 31 days after the company filed for Chapter 11 protection.
Gonzalez said Tuesday that the case could be heard by the appeals court, skipping district court, which normally would be the next stop for an appeal of a bankruptcy ruling. It was a move that had been sought by Chrysler, which wants the process to move as quickly as possible.
Posted by Marcia Oddi on June 3, 2009 09:10 AM
Posted to Courts in general