That’s what the Wall Street Journal is reporting.
Judge Arthur Gonzalez of the U.S. Bankruptcy Court in Manhattan rejected arguments from some Chrysler creditors and dealers seeking to block the deal, noting in his 47-page judgment that Fiat SpA was the only viable alternative to the immediate liquidation of the company.
The star of this bankruptcy process is Fiat who stands to gain as much as 51% ownership in the new Chrysler to be called Chrysler Group, LLC. At the start, the Italian automaker will own 20% but could eventually move up the shareholder ladder.
Fiat will own 20% of the new company, though it could increase its stake to 35% if it meets certain goals, such as starting production of new engines in the U.S. and the introduction of a car that can go at least 40 miles on a gallon of gasoline. Over time, Fiat would have the option of increasing its stake to as much as 51% as long as Chrysler pays back the billions of dollars in loans it has gotten from the Treasury Department.
I’m both surprised (or am I?) and glad that things are in fact going very well. The ones we heard before from the administration and others who were against bankruptcy filings were mere empty threats.