NEW YORK — When Chrysler filed for bankruptcy April 30, restructuring veterans scoffed at the idea that a big company could move through the process quickly, and industry veterans warned that the U.S. manufacturing base would be deeply disrupted.
But today, federal bankruptcy Judge Arthur Gonzalez is scheduled to consider a motion to sell most of Chrysler’s assets to a new entity led by Italy’s Fiat. The judge’s approval would set up the automaker for one of the biggest and fastest bankruptcy proceedings of its kind.
The process has resulted in only temporary setbacks to the nationwide network of suppliers, and sales have not plunged. Experts said that’s probably because many people view the bankruptcy as a temporary stop and because the federal government guaranteed car warranties.
Opposition from creditors that surfaced during the proceedings quickly evaporated, as Gonzalez wasted little time ruling against their claims.
On Tuesday in U.S. District Court, Judge Thomas Griesa declined a request by Indiana pension funds to move Chrysler’s case to the federal district court.
If the sale is approved, Chrysler is expected to move quickly to close the transaction and re-emerge as a new entity. But Chrysler’s bankruptcy case could continue for years as other stakeholders such as dealers resolve their claims.
