the Chrysler transaction gave the structure a 21^st century makeover, which culminated in a court of appeals decision filed on Wednesday that cleared the way for the carmaker to move forward with its plan to emerge from bankruptcy. In June, the U.S. Supreme Court rejected appeals by opponents of the Chrysler bankruptcy plan — notably the state of Indiana which has pension plans invested in Chrysler — to delay the bankruptcy proceedings.

Chrysler moved through court at lightning speed, convincing judges to allow it to skip district court and finishing in just 42 days from the time it filed its Chapter 11 petition.

By June 10, Chrysler had sold its assets to an alliance headed by Italy’s Fiat, which now holds a 20% stake and management control of the carmaker. The United Auto Workers union, through a voluntary employee benefits association (VEBA), currently owns 55% of the new Chrysler, while the U.S. and Canadian governments together have a 10% stake. The U.S. Treasury is providing $6.6 billion in exist financing, and Fiat is expected to increase its holdings when U.S. coffers are repaid.

Chrysler’s speedy exit from bankruptcy is attributable to two efforts: the groundwork done by its management to negotiate with the unions, suppliers, dealers, and Congress before filing for Chapter 11 protection, and the legal strategy of putting eight executives, including then–chairman and CEO Robert Nardelli and CFO Ronald Kulka, on the witness stand.

“We let the business tell the story rather than the lawyers,” says Corinne Ball of Jones Day, the lead attorney for the Chrysler rescue. It was management’s deep understanding of the business that allowed the bankruptcy court, appellate court, and Supreme Court to understand the urgency of expediting the process, according to Ball.

“Delay was our greatest fear,” recalls the attorney, who says the time line for exiting bankruptcy was dictated by the ability of Chrysler and its dealers and suppliers to operate as going concerns. Without an accelerated process, Chrysler, as well as some of its dealers and suppliers, was headed for extinction, she believes.

The marketplace consensus was that no automaker could survive the typical lengthy Chapter 11 proceedings. As the executives explained on the stand, cost-cutting measures lead to plant shutdowns, which in turn lead to idle production lines. That automotive supply chain can absorb such operations halts for only about six to eight weeks. After that, dealers run out of inventory and financing, and suppliers run out of receivables.

One more article from a business perspective (CFO) about what Chrysler did right…