BBC News are reporting that a group of lenders unhappy with the reconstruction of Chrysler – in Chapter 11 bankruptcy protection – have asked a New York court to halt the process.
The US government is backing a plan to sell most Chrysler assets to a new entity led by Italian carmaker Fiat but a group of 20 lenders, including hedge funds, want the deal blocked.
Lawyers representing the group, who have also asked for their identities to be kept secret, said the plan would go against normal bankruptcy principles.
Chrysler has asked for permission for a quick sale of most of its assets to a new company held by Italy’s Fiat , a United Auto Workers union healthcare trust and the US and Canadian governments. Full story…