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Chrysler sale heading to U.S. Court of Appeals
June 2, 2009 / 2:42 AM / 8 years ago

Chrysler sale heading to U.S. Court of Appeals

NEW YORK (Reuters) - Chrysler’s sale of most of its assets to a group led by Italian automaker Fiat FIA.MI will be appealed to the U.S. Court of Appeals for the Second Circuit, bypassing the lower District Court, a bankruptcy court judged ordered on Tuesday.

The bankruptcy court judge, Arthur Gonzalez, approved the sale on Monday. Unless blocked on appeal, the sale becomes effective on Friday, bringing a “New Chrysler” out of bankruptcy.

An attorney representing three pension funds from Indiana has said he will appeal the approval of the sale, which he said violates the traditional priority of repayment by favoring unsecured creditors over secured creditors.

Reporting by Tom Hals; Editing by Derek Caney

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