Updated

A hearing on Chrysler’s decision to sever ties with around a quarter of its dealerships was postponed until Thursday, Dow Jones reported.

The hearing was originally scheduled for Wednesday, but will now begin at 8 a.m. Eastern time on Thursday. Judge Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York will preside.

Evidence will be presented on Thursday and Friday, with oral arguments set for Tuesday, Dow Jones said.

Chrysler, which is trying to exit Chapter 11 bankruptcy protection and complete the sale of much of its business to Italian car maker Fiat, has made plans to close 789 of its more than 3,000 dealerships.

Executives from Chrysler and General Motors testified on Capitol Hill Wednesday afternoon about why they plan to close dealerships. Chrysler has said that its dealerships overlap too much and that its dealer network is too big.

Separately, the U.S. Court of Appeals for the Second Circuit in New York has agreed to hear objections by Indiana pension funds to the proposed sale of Chrysler to Fiat. The hearing will begin on Friday at 2 p.m. ET, according to a court order.

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