Chrysler dealers looking to block terminations in bankruptcy court - WAOW - Newsline 9, Wausau News, Weather, Sports

Chrysler dealers looking to block terminations in bankruptcy court

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NEW YORK (AP) -- Chrysler dealers opposed to the automaker's plan to terminate relationships with some 789 Chrysler franchises are headed back to court today.

Chrysler is working to reduce its dealer ranks by about 25 percent as part of its cost-cutting actions. But the move still needs approval of the bankruptcy court.

About a dozen dealers began testifying last week and arguments are set to resume in the New York courtroom at 8:30 this morning.

Chrysler flew through five weeks of bankruptcy proceedings and appeared all but certain to be able to complete the sale of its assets to Fiat before a June 15 deadline. But that was put on hold yesterday when Supreme Court Justice Ruth Bader Ginsburg issued a stay. She's reviewing an appeal by a trio of Indiana pension and construction funds which own a small part of Chrysler's secured debt.

Online Reporter: Donnie Forti

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