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U.S. Supreme Court Delays Chrysler Sale to Fiat
A U.S. Supreme Court judge has delayed the sale of Chrysler to a new Fiat-run company indefinitely. The move by Justice Ruth Bader Ginsburg came just before a 4 p.m. deadline set by a New York appeals court would have seen the sale completed.
The statement by Justice Ginsburg was just one sentence and gave no mention if or when the Supreme Court would hear an appeal by several Indiana pension funds which are challenging the sale. Representatives of those pension funds had just lost an appeal and were said to be looking to take their challenge to the U.S. supreme court. The group is arguing that by permitting the sale of Chrysler to Fiat the bankruptcy court acted contrary tot he law by putting unsecured lenders ahead of secured ones.
The Obama administration has pressured the Supreme Court against delaying the sale of Chrysler saying that such a move could have "grave consequences," namely, the liquidation of Chrysler's assets. If the sale of Chrysler to the Fiat-led group (which also includes the U.S. and Canadian governments) does not transpire by June 15, Fiat is able to walk away.
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