Chrysler to Have Bankruptcy Court Hearing

2009-05-27 13:42:31 (GMT) (WiredPRNews.com - Business, News)

The automaker is seeking permission to sell assets despite objections.

Wired PR News – Financially struggling Chrysler will appear in bankruptcy court Wednesday. As reported by the Associated Press (AP), the automaker will request permission to sell many of its assets to a Fiat headed group to prevent having to resort to liquidation. The move has reportedly been opposed by Chrysler dealers, former workers, and others. Chrysler filed for bankruptcy protection at the end of April.

As noted by the AP, fellow struggling automaker General Motors Corp. (GM) will also have news Wednesday with the announcement of debt swap results which is said to determine whether it may also have to file for bankruptcy, as opposed to restructuring without the intervention of court. Bondholders were provided a debt exchange option, in which they could trade their debt for a stake in the restructured company until midnight Tuesday.

Photo Credit:

Johannes Fasolt