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| Chrysler's sale to Fiat approved | Chrysler's sale to Fiat approved |
| (10 minutes later) | |
| US car group Chrysler has secured court approval to sell most of its assets to a consortium led by Italy's Fiat. | US car group Chrysler has secured court approval to sell most of its assets to a consortium led by Italy's Fiat. |
| The move, which is backed by both the US and Canadian governments, should enable Chrysler to exit bankruptcy protection in the near future. | |
| Under the terms of the deal, Fiat will control 20% of Chrysler, while 68% will be owned by a union trust, and the two governments will share 12%. | Under the terms of the deal, Fiat will control 20% of Chrysler, while 68% will be owned by a union trust, and the two governments will share 12%. |
| It comes as General Motors is about to file for its own bankruptcy protection. | It comes as General Motors is about to file for its own bankruptcy protection. |
| Government loans | |
| Under the terms of the Fiat-led deal, creditors holding $6.9bn (£4.3bn) of Chrysler debt will receive only $2bn. | |
| Meanwhile, the two governments have agreed to provide about $8bn in loans to the new Chrysler. | |
| Fiat is not paying anything for its 20% stake, which will give it access to the US car market. It has the option to increase its shareholding in Chrysler in the future. | |
| In return, Chrysler would be able to take advantage of Fiat's expertise in making smaller, more fuel-efficient cars in its existing US factories. | |
| Chrysler, which is the smallest of the three US carmakers after General Motors (GM) and Ford, filed for bankruptcy protection on 30 April. | |
| Later on Monday GM is due to go into bankruptcy protection, which will be the biggest corporate failure in US history. |