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Tuesday, June 02, 2009
Courts - "Judge Moves Appeal of Chrysler Sale to 2nd Circuit"
Updating this entry from yesterday, the NY Times is reporting this afternoon via its DealBook Blog:
A federal judge on Tuesday ordered an appeal of Chrysler’s sale to Fiat be heard by the Second Circuit Court of Appeals, a move lawyers for the American carmaker had sought in an effort to fast-track the deal.Normally, appeals to bankruptcy court decisions are heard in federal district court, which sits directly above bankruptcy court in the judicial hierarchy. But cases may be moved directly to the appeals court if a judge finds the need to do so necessary.
Judge Arthur J. Gonzalez, who has overseen the Chapter 11 case, wrote in his order: “This case involves a matter of public importance, and an immediate appeal may materially advance the progress of this case.”
The appeal was filed by lawyers for a group of Indiana pension funds, who objected to the sale because they are seeking more compensation for the Chrysler secured debt that they hold. * * *
Late Sunday night, Judge Gonzalez approved Chrysler’s sale to Fiat, overruling the objections by the Indiana funds and others. On Monday night, he agreed to shorten a customary 10-day stay of the sale to four days, allowing Chrysler to complete the transaction by Friday at noon.
Should that happen, the Indiana funds would likely receive only damages if the appeals court rules in their favor, rather than an unwinding of the deal.
Posted by Marcia Oddi on June 2, 2009 01:26 PM
Posted to Courts in general