Chrysler BK Challenge Could Snag GM Restructuring

DETROIT (Dow Jones)--General Motors Corp.'s (GMGMQ) creditors, facing deep concessions in bankruptcy court, could be emboldened to seek better terms if Chrysler LLC's lenders succeed in their challenge.

The U.S. Supreme Court on Monday held up Chrysler's sale to Fiat SpA (FIATY) - a move the U.S. government has warned could lead to liquidation - at the request of several Indiana pension funds and consumer groups that opposed the transaction.

The opposition, if it succeeds, could bode poorly for GM in the midst of a parallel government-orchestrated Chapter 11 filling it hopes to complete no later than September.

http://online.wsj.com/article/BT-CO-20090609-709133.html

See Also:

http://mobile.baltimoresun.com/inf/infomo;JSESSIONID=8389085C9BEB3EAFC834.2583?view=top_stories_item&feed:a=balt_sun_1min&feed:c=topstories&feed:i=47400095&nopaging=1

and

http://newledger.com/2009/06/chryslers-speed-bump/