Chrysler did not pass that exam, as the court ruled in favor of the funds and delayed the sale process. The sale is now "stayed pending further order", as Justice Ruth Bader Ginsburg ruled. The ruling in essence is not a cancellation of the process, but only designed to give the court more time to look into the requests submitted by the funds.
"We understand this to be an administrative extension designed to allow sufficient time for the court to make a determination on the merits of the request for a stay," an administration official was quoted as saying by Reuters.
"I don't think this gives you an indication that they're ruling on the merits, but Ginsburg is maintaining the status quo at least to determine whether to consider the appeal," Sheryl Toby, a bankruptcy attorney in Michigan told the source.
As was to be expected, Fiat's reaction came today. The Italian manufacturer says it will not exercise the right to walk out of the deal, as the agreement between it and Chrysler states.
"Fiat will not walk away from the deal if it isn't completed by the June 15 deadline," a spokesman for the Italian company commented.
According to some bankruptcy lawyers, GM should pay a close look at what is happening with its competitor. As Jerry Reisman, a lawyer in New York said, "Unless Chrysler is allowed to reorganize and sell its assets to Fiat, GM will certainly face the same type of opposition from objecting creditors which will doom GM's reorganization."
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