Chrysler creditor group throws in the towel

The Chrysler Non-TARP Lenders Group has disbanded. The small group of creditors that had been objecting to Chrysler’s merger with Fiat and quick exit from bankruptcy has given up its challenge after rising defections and declining influence meant “it wasn’t sensible to proceed” in the words Glenn Kurtz of White & Case, the group’s attorneys.

The dissolution of the group ends the most serious challenge to Chrysler’s completing its bankruptcy plan within the original 30- to 60-day period originally envisioned.