Chrysler Sale Faces Challenge in Appeals Court

A federal appeals court agreed late Tuesday night to hear an appeal from a group of lenders seeking to block the sale of Chrysler's assets, a move that could delay the automaker's exit from bankruptcy proceedings, The Washington Post reported. The U.S. Court of Appeals for the Second Circuit accepted the appeal from a coalition of Indiana pension funds that has sought to block the sale of most of Chrysler's assets to a group led by Italian automaker Fiat, according to Chris Conner, spokesman for Indiana State Treasurer's Office. A hearing is scheduled for Friday, Conner said. The funds, which hold about $42 million of Chrysler's $6.9 billion in secured debt, claim the terms of the sale violate their rights as secured lenders by limiting their ability to recover all of their original investment in the company. Read more.