WASHINGTON (CNN) - The Obama Administration Tuesday urged the Supreme Court to drop the stay which temporarily halted the sale of Chrysler, arguing Fiat alter the deal or walk away if it isn't approved by next week.
"If the sale is not consummated by June 15, there is a substantial possibility that Fiat will abandon the transaction or insist on materially different terms as a condition of its participation," Justice Department lawyers said in a brief filed with the Justices.
"It is also undisputed that Chrysler's condition worsens each day it remains in bankruptcy and that Fiat is aware of that situation," the government said.
"While Chrysler remains in bankruptcy with no confirmed alternative to liquidation, its situation deteriorates," the government argued.
Supreme Court Justice Ruth Bader Ginsburg granted a stay to opponents of the sale who stand to suffer major investment losses if the transaction with Fiat is approved.