Yesterday morning, Chrysler Group LLC (formerly New CarCo Acquisition LLC), backed by Italian automaker Fiat S.p.A., acquired substantially all of Chrysler’s assets. Under the terms of the deal, a union retiree trust will initially own 55% of the new company, Fiat S.p.A. will own 20% and the U.S. and Canadian governments will each own smaller stakes. Fiat S.p.A. will have the opportunity to increase its ownership stake to 35%, upon the completion of certain benchmarks.
The deal’s progress was temporarily halted on Monday when U.S. Supreme Court Justice Ruth Bader Ginsburg issued an order extending a temporary stay placed by a federal appeals court last week. An appeal had been sought by a group of Indiana-based pensioners who objected to the federal government’s role in the bankruptcy procedures. On Tuesday, the Supreme Court lifted the stay, ruling that the pensioners had not “carried the burden” necessary in proving their grievances.