UPDATE: Chrysler ruling, Circuit decision/stay
on Jun 6, 2009 at 8:15 am
UPDATE 4:50 p.m.. Saturday:
The Second Circuit Court has made available its order of Friday upholding the May 31 decision of U.S. Bankruptcy Court Judge Arthur J. Gonzalez approving the sale of Chrysler’s assets. The Circuit Court “affirmed for substantially the reasons” stated by Judge Gonzalez, but indicated it would issue opinions of its own later. (The full text of the order is reproduced below. The ruling was put into effect immediately on Friday. Judge Gonzalez’s decision, incorporating changes made on June 2, can be read here. The judge, in a separate ruling (found here) declared that debt holders challenging the sale had no right to test the legality of using federal economic recovery funds to finance the Chrysler sale.)
Here is the Circuit Court decision and stay order of Friday:
“The June 1, 2009, order of the United States Bankruptcy Court for the Southern District of New York, authorizing the sale of substantially all of the debtors’ assets, on terms stated therein, is affirmed for substantially the reasons stated in the opinions of Bankruptcy Judge Gonzalez, entered May 31, 2009. An opinion (or opinions) of this Court will issue in due course. The mandate shall issue forthwith.
“The stay entered by this Court on June 2 will continue until the earlier of 4:00 p.m. on Monday, June 8, 2009, or the time at which a stay is denied by the U.S. Supreme Court. Before: DJ, CH.J., ALK & RDS, C.J.J. (Entry date June 5, 2009).”
(The judges on the panel were Chief Judge Dennis Jacobs and Circuit Judges Almalya L. Kearse and Robert D. Sack.)
In the Circuit Court, the case was In re: Chrysler, LLC, et al. (docket 09-2311), and in the Bankruptcy Court, it bore the same title (docket 09-50002).
Briefs filed in the Circuit Court by the key parties are available on the BankruptcyProf Blog, at this link.
