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NEW YORK (CNNMoney.com) — The U.S. Supreme Court on Tuesday cleared the way for the sale of Chrysler to a consortium led by Italian automaker Fiat.

On Monday, the Court had delayed the sale pending review of the merits of a case brought by the Indiana state pension funds, which argued that they and other lenders deserved better treatment by the bankruptcy court.

Chrysler’s asset sale was approved by a bankruptcy judge on May 31, just hours before the bankruptcy filing of General Motors (GMGMQ).

Full Story At money.cnn.com

NEW YORK (CNNMoney.com) — The Supreme Court threw a wrench into the plans to have a quick bankruptcy process at Chrysler LLC, delaying the company’s combination with Italian automaker Fiat.

The bankruptcy judge overseeing the Chrysler case had given approval for the company’s most valuable assets, such as plants, dealerships and contracts, to become part of a new company in which Fiat would hold a significant stake.

Supreme Court Justice Ruth Bader Ginsburg, in an order issued late Monday, granted a request for a delay of that approval sought by Indiana state pension funds, which had argued that they and other lenders deserved better treatment by the bankruptcy court.

Full Story Atnews.bbc.co.ukl

Germany’s Economy Minister Karl-Theodor zu Guttenberg said that Fiat had provided more detail about capital contributions and risk-sharing.

German government officials are currently discussing at least three rival bids, submitted before Wednesday’s deadline.

Fiat said it would cut fewer than 10,000 jobs if its bid succeeds.

Three bidders

Rival bidders include Canadian car parts maker Magna and RHJ International, a Brussels-based investment firm.

The Italian carmaker said last week the cuts would be made across Opel’s Europe-wide operations, which currently employ about 50,000.

Full Story At  CBS News

AP) Italian automaker Fiat Group SpA will sign paperwork to become a partner with Chrysler LLC by Thursday, according to three people briefed on the deal.

The partnership is the last piece of a huge restructuring plan needed to keep Chrysler alive as it approaches Thursday’s government deadline to cut labor costs, slash debt and take on a partner.

The people said Wednesday that despite the partnership, Chrysler could still wind up under Chapter 11 bankruptcy protection for a short time if some creditors don’t agree to reduce their debt. But they said the government would agree to finance the restructuring rather than cut off Chrysler’s aid and leave it destined for liquidation.