Chrysler's 363 Sale Motion Granted

As expected, Bankruptcy Judge Authur Gonzalez issued an order granting Chrysler's motion, pursuant to section 363 of the Bankruptcy Code, seeking authorization sell substantially all of its operating assets to the entity affectionately known as New Chrysler. New Chrysler will be owned by Fiat S.p.A., the United Auto Workers Voluntary Employee Benefits Association and the American and Canadian governments. Notably absent from the assets Chrysler is selling to New Chrysler are franchise agreements with 789 Chrysler, Dodge and Jeep dealers. Those agreements are the subject of Chrysler's motion to reject which is set for a hearing to begin on June 3.