On Monday Supreme Court Justice Ruth Bader Ginsburg put the future of the Fiat/Chrysler purchase in doubt by issuing a stay on the sale. Three Indiana pension funds are suing, claiming the bankruptcy is unfair to lenders such as themselves, while favoring other lenders who took less risk. Unfortunately for Chrysler, they had until June 15th to complete the sale or Fiat could walk away.
Today, however, Fiat is sticking to their guns.
Italian automaker Fiat said Tuesday it will not turn its back on a deal to acquire a controlling stake in Chrysler despite a U.S. Supreme Court stay on the sale.
Under terms of the agreement, Fiat has the option to abandon the deal if it is not completed by June 15.
“Fiat won’t walk away from Chrysler,” Fiat spokesman Gualberto Ranieri said.
If Fiat does walk away, then Chrysler will have basically no choice to liquidate. While Fiat seems committed to the purchase, at this point, anything is possible.
UPDATE: Supreme Court will not block the sale.
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