06.08.09

Court of Appeals approves Chrysler restructuring; order stayed for possible Supreme Court action

On Friday afternoon, the Second Circuit Court of Appeals held oral argument on the objecting parties challenge to the proposed restructuring of Chrysler. Immediately following the argument, the Court issued its ruling from the bench.  The Court affirmed the Bankruptcy Court’s approval of the proposed restructuring in all respects.  The Court also continued the stay in effect until 4 p.m. today (June 8) to give the objectors a chance to seek review by the United States Supreme Court.  If the Supreme Court declines to review the case, or to extend the stay further, the parties will be allowed to move forward to implement the restructuring agreements after 4 this afternoon.