A US government-backed bankruptcy plan for Chrysler moved one step forward after a group of dissident lenders dropped their legal challenge. The restructuring plan is designed to help Chrysler set up a partnership with Fiat.
AFP - A group of lenders to troubled automaker Chrysler withdrew their court challenge Friday against a government-backed bankruptcy restructuring plan for the auto giant, their lawyer said.
The group had objected to President Barack Obama's administration plan to reduce Chrysler's debt to help create a partnership with Italy's Fiat.
"After a great deal of soul-searching and quite frankly agony, Chrysler’s non-TARP lenders concluded they just don’t have the critical mass to withstand the enormous pressure and machinery of the US government," lawyer Tom Lauria said.
"As a result, they have collectively withdrawn their participation in the court case."
The group is identified only as the "Chrysler Non-TARP Lenders," because the members have not received aid under the government's Troubled Asset Relief Program, a 700-billion-dollar measure to stabilize the financial system.
Date created : 2009-05-08