AUBURN HILLS – Chrysler LLC selected C. Robert Kidder, former chairman of Borden Chemical and Duracell Chairman, to become chairman of a reorganized Chrysler.
Kidder, currently the lead director of Morgan Stanley, will succeed Robert Nardelli, who will step down as chairman and chief executive when the auto maker emerges from Chapter 11 bankruptcy protection, The Wall Street Journal reported. Chrysler said it will name a new CEO with the “concurrence” of Fiat SpA, which has agreed to forge an alliance with Chrysler.
Kidder’s board experience and business “will provide the leadership and strategic counsel that will help to create a strong global competitor moving forward,” Mr. Nardelli said in prepared comments.
Also Wednesday, Chrysler won court approval to borrow the full amount of a $4.96 billion loan from the U.S. and Canada.
Judge Arthur Gonzalez of the U.S. Bankruptcy Court in Manhattan signed off on the financing at a court hearing. When Chrysler filed for bankruptcy last month, Judge Gonzalez said the auto maker could borrow a portion of the money.
His approval comes as Chrysler is preparing to ask the judge next week to approve the sale of the bulk of its assets to a new company that will be owned by Fiat, the United Auto Workers union and the U.S. and Canadian governments.
Also Wednesday, Judge Gonzalez refused a request by a group of Indiana pension funds to hold up Chrysler’s bankruptcy sale, a plan that the funds say is unconstitutional.
He denied their request to delay by one week a hearing set for next Wednesday to approve the sale of Chrysler’s assets. The pension funds asked for the delay in court Wednesday so they could bring their case to U.S. District Court and try to block the sale.
The pension funds — the Indiana State Teachers Retirement Fund, the Indiana State Police Pension Trust, and the Indiana Major Moves Construction Fund – own about $42.5 million of Chrysler’s $6.9 billion in secured debt, according to their lawyer.
a>>
