DETROIT – Chrysler LLC and Fiat SpA closed their government-brokered alliance Wednesday, a day after the U.S. Supreme Court removed the transaction’s last remaining obstacle.

The Supreme Court late Tuesday rejected creditors’ objections, paving the way for Chrysler to emerge from bankruptcy protection. The auto maker filed for bankruptcy on April 30, and the government said it was going to seek a solution within 60 days, The Wall Street Journal reported.

As part of the reorganization plan, the new Chrysler will be 20 percent-owned by Fiat, while the United Auto Workers union will control more than 55 percent. Fiat’s stake could increase to 35 percent if the new company meets benchmarks intended to ensure the development of fuel-efficient vehicles in the U.S., and it has the option to become the majority stakeholder once U.S. loans have been repaid.

Chrysler will operate as Chrysler Group LLC, with Robert Kidder as chairman and Fiat Chief Executive Sergio Marchionne overseeing day-to-day operations.

The high court’s move marked a victory for the administration of President Barack Obama and its plan to remake the American auto industry by pushing both Chrysler and General Motors Corp. through quick restructurings under Chapter 11 bankruptcy.

But the order was a setback for a group of Indiana pension funds and others who maintained the government’s treatment of creditors in the case could chill private lending to distressed firms and alter the rules of bankruptcy reorganizations.

The Supreme Court, in a brief order, said that the funds had not “carried the burden” of proving that their grievances merited the court’s attention.

Both Chrysler and the Obama administration argued that speed was of the essence in the company’s Chapter 11 restructuring and that any delays could jeopardize the Auburn Hills, Mich., auto maker’s future, chasing away potential customers, straining its suppliers, and potentially causing Fiat to turn away from the deal.

The ruling cleared away a major legal obstacle for Chrysler and for GM’s much larger and more complex Chapter 11 restructuring. The administration is hoping to bring GM out of bankruptcy and put it under majority government ownership by the end of the summer.

Meanwhile, Chrysler’s departing CEO, Robert Nardelli, told employees in a memo he is confident the auto maker can bounce back under the new management team, according to a copy of the memo reviewed by The Wall Street Journal.

“I strongly believe that Chrysler will meet every challenge and will build a bright future as part of a vibrant new company,” Nardelli wrote.

He leaves the company on Wednesday after 20 months as CEO and will be succeeded by Marchionne.

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