US Supreme Court puts Chrysler sale on hold

Milan/Washington: Italian automaker Fiat will not walk away from its deal to buy bankrupt Chrysler LLC, a spokesman said on Tuesday after a US court delay threw the deal into doubt.

Both Chrysler and the Obama administration have said that a long delay could end the deal and end up with Chrysler's liquidation.

They added that Fiat could walk away from the deal if it does not close by June 15.

"Fiat will not walk away from the deal if it isn't completed by the June 15 deadline," a spokesperson said on Tuesday.

In a ruling on Monday, Supreme Court Justice Ruth Bader Ginsburg said the bankruptcy judge's orders allowing the sale "are stayed pending further order" by her or by the Supreme Court.

It was unclear what the next step would be.

However, many experts interpreted the action as giving the top court more time to weigh its response to a request by three Indiana pension funds and others for a stay of the deal.

BIG DEAL: Both Chrysler and the government feel a long delay may end up with Chrysler's liquidation.

Reuters

Fiat says it will stick to the deal ithas struck with Chrysler.

Italian automaker Fiat will not walk away from its deal to buy bankrupt Chrysler LLC, a spokesman said on Tuesday after a US court delay threw the deal into doubt.

Milan/Washington: Italian automaker Fiat will not walk away from its deal to buy bankrupt Chrysler LLC, a spokesman said on Tuesday after a US court delay threw the deal into doubt.

Both Chrysler and the Obama administration have said that a long delay could end the deal and end up with Chrysler's liquidation.

They added that Fiat could walk away from the deal if it does not close by June 15.

"Fiat will not walk away from the deal if it isn't completed by the June 15 deadline," a spokesperson said on Tuesday.

In a ruling on Monday, Supreme Court Justice Ruth Bader Ginsburg said the bankruptcy judge's orders allowing the sale "are stayed pending further order" by her or by the Supreme Court.

It was unclear what the next step would be.

However, many experts interpreted the action as giving the top court more time to weigh its response to a request by three Indiana pension funds and others for a stay of the deal.