Chapter 11 bankruptcy protection reorganisation could be completed this week
28 May 2009

Chrysler could emerge from bankruptcy protection as soon as this week, as the judge in charge of the case prepares to overrule any objections and approve its sale.

Less than 30 days after it filed for bankruptcy, Chrysler is on the brink of being sold to Fiat, workers' unions and the US and Canadian governments, in exchange for $2 billion (£1.3 billion) paid to its debtors.

Opponents to the sale include almost 800 dealers Chrysler wants to shut down, as well as debtholders and retirees. Suppliers, which are owed more than $5 billion (£3.1 billion), have also objected.

The sale would complete the US government's goal of reorganising Chrysler within 30 to 60 days of it filing for Chapter 11 bankruptcy protection on 30 April.

If approved by the court judge, the sale will allow Chrysler to drop $6.9 billion (£4.3 billion) of loan debts, as well as retiree benefit payments.

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