Chrysler sale approved

Judge Arthur J. Gonzalez approved bidding procedures for the rapid sale of Chrysler assets late last night. Saying “there is an urgent need for the deal to be consumated,” he overruled objections from a group of lenders who termed the speeded-up process an “absurdity.”

Chrysler had asked for permission to have a quick sale of most of its assets to a new company held by Fiat SpA, the United Auto Workers’ Voluntary Employee Beneficiary Association, and the U.S. and Canadian governments. The lenders had sought to delay the sale or make the bidding more competitive. They claimed the approved procedures will prevent anyone but the government from submitting a successful bid.

Gonazales denied the lenders’ motions, ruling that courtroom testimony had shown the procedures were designed to “encourage bidding from any interested party.”

Potential “interested parties” did get an additional five days to submit bids. Judge Gonzalez set a deadline of May 20 for submission and set a May 27 hearing date for approval. Chrysler had originally asked for a May 22 approval date. Bidders must include a 10 percent deposit with their bid.

The judge also approved a $35 million breakup fee to be paid to Fiat if a better offer for the Chrysler assets emerges.