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Appeals court to hear argument vs. Chrysler sale

NEW YORK (AP) - The decision on whether Chrysler can sell the
bulk of its assets to a group led by Italy's Fiat heads to a
federal appeals court in New York today.
The proposed sale is part of Chrysler's plan to emerge from
bankruptcy protection.
The court will hear arguments from attorneys representing
Chrysler LLC, Fiat Group SpA and a trio of Indiana state pension
and construction funds.
The funds argue the deal unfairly favors the interests of the
company's unsecured stakeholders ahead of those of secured
debtholders such as themselves.
The appeals court halted the sale earlier this week, pending the
Indiana state funds' appeal. Chrysler had hoped to close the sale
by the end of this week.
Chrysler has maintained that the sale is its only hope of
avoiding selling itself off piece by piece. If the sale doesn't
close by June 15, Fiat has the option of pulling out of the deal.

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