Chrysler Fiat Sale Delayed
Yesterday we told you the chances of the Chrysler Fiat merger being delayed were almost zero – we were so wrong. US Justice Ruth Ginsburg has ordered a delay on the final sales deal after a requested postponement, which is supposed to close by June 15th.
Fiat stated after this decision they would NOT back down from this deal. They are committed to the Chrysler buyout. Chrysler itself is worried, stating that a pause like this could “kill” the deal and cause the auto maker to force a liquidation. Chrysler is trying to save their other makes, Dodge/Jeep, as well as almost 39,000 jobs.
Supreme Court officials said this stay was only to further review the merits of a sale to Fiat. Also causing some tension is the Indiana shareholders who hold pension funds worth $42.5 million of $6.9 billion in Chrysler secured loans. They are concerned those pensions will be lost if this merger goes through.
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