NEW YORK (AP) -- Chrysler headed back to bankruptcy court Tuesday to get a judge to approve the termination of 789 dealer franchises, while Chrysler's plan to become a stronger automaker partnered with Italy's Fiat awaits action by the nation's highest court.

The sale of Chrysler's assets to Fiat Group SpA had been expected to close more than a week ago, but Supreme Court Justice Ruth Bader Ginsburg's decision to delay the sale now threatens to derail Chrysler's restructuring plans.

More than 25 attorneys representing hundreds of dealers from across the country argued in bankruptcy court Tuesday that little would be gained by terminating their franchises, while Chrysler maintained that the move is a necessary part of its plan to cut costs and quickly emerge from Chapter 11.

The dealers also argued that any ruling by U.S. Judge Arthur Gonzalez should be put on hold pending Supreme Court action on the Chrysler sale.

Arguments wrapped up early Tuesday afternoon and Gonzalez said he would issue his ruling later in the day.