LONDON (ShareCast) - The US Supreme Court has cleared the way for the sale of assets by bankrupt car maker Chrysler (Xetra: 710000 - news)
to a group led by Italian car giant Fiat (Milan: F.MI - news) .
In a stock-exchange statement, Fiat said it expects the transaction to close "shortly."
The sale had been put on hold after opponents of the deal, most notably three Indiana pension funds that own Chrysler secured loans, wanted the asset sale investigated more thoroughly by the Supreme Court.
The two-page ruling came late on Tuesday, 24 hours after the temporary suspension of the sale of the Chrysler, Jeep and Dodge marques to Turin-based Fiat.
The Obama administration said it was "delighted" the deal could go ahead. "The Chrysler-Fiat alliance can now go forward, allowing Chrysler to re-emerge as a competitive and viable automaker."
The pension funds had argued that the terms of the asset sale are illegal, as they rank unsecured debt held by creditors such as the United Auto Workers union above secured debt.
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