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.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Ford Mustang
    First Drive
    24 March 2018
    Sixth-generation Mustang gets a leaner face, revised suspension, improved safety equipment and a more power V8. We see how it fares on southern French roads
  • First Drive
    23 March 2018
    Fully-loaded, big-hitting diesel CLS shows the potential perils of ticking too many options boxes on your order form. A good car with a bad suspension combination.
  • BMW M5
    First Drive
    22 March 2018
    Super saloon deploys four-wheel drive to improve every facet of its driving experience. Faster and more capable than any, and more exciting than most, of its celebrated predecessors
  • Range Rover Sport SVR
    First Drive
    22 March 2018
    More power and an intoxicating soundtrack have breathed new life into our love affair with the biggest, baddest Range Rover Sport variant
  • First Drive
    21 March 2018
    The new Vantage has been developed as a Porsche 911 beater, and our first taste on UK roads suggests it can live up to that bold claim