The US Supreme Court on Tuesday rejected a request to block the sale of ailing US automaker Chrysler to Italian automaker Fiat, clearing the way for the US government-backed sale.

In a brief order, the Supreme Court said that those seeking to put the deal on hold "have not carried that burden" to justify such action.

It would have taken the votes of five of the nine Supreme Court members to grant a stay putting the deal on hold. The court acted with no recorded dissent from any of the justices, according to media reports.

The request was filed at the high court Sunday by three Indiana state pension and construction funds.

The Indiana State Police Pension Fund, the Indiana Teacher's Retirement Fund and the state's Major Moves Construction Fund claim the deal unfairly favors the interests of the company's unsecured stakeholders ahead of those of secured debt holders such as themselves.

On June 1, US Judge Arthur Gonzalez, the bankruptcy judge overseeing Chrysler's case, approved the sale, finding that the deal with Fiat was Chrysler's only alternative to liquidation.

The appeals court in New York halted the sale on June 3, allowing opponents to appeal Gonzalez's decision.

Chrysler is seeking to leave its bad debts in bankruptcy, and leave with its good assets for the new tie-up with Fiat.

The US automaker filed for Chapter 11 bankruptcy protection on April 30 and announced a partnership with Italian automaker Fiat. On June 1,

Chrysler said it was selling some assets and operations to the newly formed company Chrysler Group LLC.

Under the deal, Fiat will hold a 20 percent stake in the new company, with an option to increase this to 35 percent, and eventually to 51 percent.

Chrysler faces a June 15 deadline, after which Fiat could walk away from the deal to take 20 percent of the company.

(Xinhua News Agency June 10, 2009)