Judge approves sale of Chrysler
A federal bankruptcy judge late Tuesday greenlighted Chrysler's plan to review and accept bids for the automaker's quick sale of the company, despite an objection raised by a state agency over Chrysler's workers' compensation obligations. U.S. Bankruptcy Judge Arthur Gonzalez said there is an "urgent need for the sale to be consummated" and said the bidding process "provides a fair and orderly sale process."
He also agreed to give potential bidders another five days — until May 20 — to bid for Chrysler's assets and pushed back the date to hold a hearing to approve until May 27 — one week behind the initial plan.
Chrysler cleared a major hurdle to emerge in 30 to 60 days — winning approval just five days after it sought bankruptcy protection in Gonzalez's ruling delivered just before 11 p.m.
"We're at the limit here on timing," said Corinne Ball, Chrysler's lead bankruptcy attorney. The value of Chrysler is declining by "hundreds of millions of dollars" every day. "Chrysler is a wasting asset."