Fiat to pursue Chrysler deal despite US Supreme Court "delay"
Turin, Italy - Fiat has no intention to pull out of its takeover bid for struggling US automotive giant Chrysler, despite a US Supreme Court decision to postpone the deal, a spokesman for the Italian carmaker said Tuesday.
The spokesman was commenting on news reports quoting Fiat CEO Sergio Marchionne that he would "never" abandon the Chrysler bid even if a June 15 deadline for the deal to go through were to expire.
On Monday, following a request by a group of Chrysler creditors who oppose the terms of the deal, US Supreme Court Justice Ruth Bader Ginsburg postponed the sale in a so-called stay order, "pending further order" from herself or the court.
Under the deal, Chrysler is seeking to emerge from bankruptcy in what would be record time - 30 to 60 days - as part of White House- backed efforts to rescue it from the dual devastation of the recession and years of making cars that few wanted to buy.
Likewise, General Motors has applied for bankruptcy protection in a larger, more complicated deal that would entail majority ownership by the US and Canadian governments.
Both companies have received massive government bail-outs.
Chrysler warned in court papers that a stay would "kill the Fiat sale and lead to a liquidation" but just after the order was issued, Fiat CEO Sergio Marchionne told Bloomberg news service that the Italian carmaker would "never" walk away from the deal.
The creditors, led by three Indiana pension funds, are appealing the bankruptcy court ruling that approved the sale on the grounds that it would cause them "irreparable harm."
Fiat had put a June 15 deadline on its offer to take over the ailing Chrysler, but Marchionne's comments indicated that was no longer the case.