UPDATE 4-Judge approves bidding procedures for Chrysler

* Judge approves bidding procedures for assets sale

* Dissidents say sale process discourages open bids

* Judge rules Chrysler lenders must name themselves

* Creditors' committee chooses Kramer Levin as lawyers (Updates with judge's decision on bidding procedures)

By Emily Chasan and Chelsea Emery

NEW YORK, May 5 (Reuters) - A U.S. bankruptcy judge approved bidding procedures for the rapid sale of most of Chrysler's assets, over objections from a group of lenders who called the accelerated timetable an "absurdity".

Judge Arthur Gonzalez, who is overseeing Chrysler's bankruptcy case in Manhattan, said late on Tuesday, the proposed procedures were "appropriate and necessary" given that there is evidence that "there is an urgent need for the deal to be consummated."

The U.S. automaker, which filed for bankruptcy in New York on April 30, had asked for permission for a quick sale of most of its assets to a new company held by Italy's Fiat SpA (FIA.MI), a United Auto Workers union-aligned healthcare trust and the U.S. and Canadian governments.

"Time is not our friend here," said Corinne Ball, Chrysler's bankruptcy attorney, at the hearing. "Preservation of value means moving ahead of this sale."