Threatened Chrysler creditors given delay

NEW YORK, May 4 (UPI) -- A New York bankruptcy judge honored a request from threatened creditors to delay a hearing on bidding procedures for Chrysler LLC's assets Monday.

The hearing was postponed 24 hours as Chrysler filed its motion to conduct the hearing Saturday instead of Friday, The Detroit News reported.

Chrysler, which opposed the delay, is trying to sell its "good" assets quickly to allow it to emerge from bankruptcy as soon as possible.

Among Monday's developments, an attorney representing creditors said some had received death threats over their role in Chrysler's demise.

Attorney Thomas Lauria asked Judge Arthur Gonzales to keep the identities of the threatened creditors a secret. They have been referred to police and the FBI for assistance, the News said.

The first witness in the case to take the stand was Robert Manzo of Capstone Financial Group, which helped Chrysler assemble its its bankruptcy budget.

Manzo said the U.S. Treasury has mandated the company furlough salaried employees for two weeks during the bankruptcy, which is expected to last nine weeks. The unpaid furloughs were expected to save the company $21 million.

The governments of Canada and the United States have agreed to loan Chrysler $10.5 billion to help the company restructure.