US Supreme Court delays Chrysler sale to Fiat

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Play VideoUS court delays Chrysler sale to Fiat

A US Supreme Court justice has delayed Chrysler's sale of assets to Italy's Fiat, bringing five weeks of breakneck-speed bankruptcy proceedings to a screeching halt.

It was unclear how long the stay would last, or if the court planned to take up the case. The move could derail the US government's ambitious plan for Chrysler to move back towards profitability without the burden of many of its debts.

Chrysler has said the government-backed sale must go through by June 15. Under a deal brokered at the end of April, Fiat would receive up to a 35 percent stake in the new company created by the sale. In return, it would share the technology Chrysler needs to create smaller, more fuel-efficient vehicles.

The logo of auto firm Chrysler at a car dealership in Manhattan,  New York. Italian auto maker Fiat has vowed to pursue plans to forge  an alliance with the distressed US group despite a US Supreme Court  decision to put a temporary freeze on the transaction. (AFP/Getty Images/File/Chris Mcgrath)