Judge OKs 1st step in Chrysler-Fiat deal

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Source: Detroit Free Press

Judge OKs 1st step in Chrysler-Fiat deal
BY JUSTIN HYDE • FREE PRESS WASHINGTON STAFF • MAY 5, 2009
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NEW YORK -- Chrysler can start the clock ticking on its sale to a partnership with Fiat S.p.A. after a bankruptcy judge approved the first major step in a rush to craft a viable automaker on life support from the U.S. government.

The sale process approved by U.S. Bankruptcy Judge Arthur Gonzalez would give any bidder other than Fiat until May 20 to step forward with a bid worth at least $2.1 billion. The court will consider confirming the sale May 27.

While debt holders carrying $300 million of Chrysler’s $6.9 billion arguing that Chrysler needed more alternatives, the automaker said without the arrangement with the Obama administration and Fiat, Chrysler was finished.

“We have no money,” said Corinne Ball, the lead attorney for Chrysler in the case. “We have a limited lifeline.”

Read more: http://www.freep.com/article/20090505/BUSINESS01/90505117/Judge+OKs+1st+step+in+Chrysler-Fiat+deal