The US Supreme Court allowed the sale of Chrysler to Fiat to go ahead, rejecting an appeal by three Indiana pension funds that requested that the deal be put on hold.
The decision came after the US government and Fiat had issued stark warnings that Chrysler would go out of business by next week if the deal were delayed while the judges considered whether to hear the pension funds' case.
The funds, which hold $42m of Chrysler's $6.9bn in secured debt, argued that an offer to pay them 29 cents on the dollar violated their creditor rights.
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