High court blocks Chrysler sale to Fiat

High court blocks Chrysler sale to Fiat

www.suntimes.com

WASHINGTON -- Supreme Court Justice Ruth Bader Ginsburg on Monday delayed Chrysler's sale of most of its assets to a group led by Italy's Fiat, but didn't say how long the deal will remain on hold.

Ginsburg said in an order that the sale is "stayed pending further order," indicating that the delay may only be temporary.

Chrysler LLC has said the sale must close by June 15, or Fiat Group SpA has the option to walk away, leaving the Auburn Hills, Mich., automaker with little option but to liquidate.

(visit the link for the full news article)

At the heart of this stoppage was a request by a group of investors, including Indiana state pension and construction funds, asked the court to consider the fact that under the current deal, unsecured creditors were being treated better than secured creditors.

The secured creditors would get 29 cents on the dollar for debt that they had purchased for 43 cents on the dollar.

They are also challenging the constitutionality of the deal, which is an excellent point and one which has not been formally addressed yet.

Obama is bound to be outraged by this delay, esp. since it was a liberal judge that stopped the deal. But it is not surprising that Ginsburg stood up for the 'little guy', given her history. Good for her.

www.suntimes.com
(visit the link for the full news article)

I don't understand what is going on, if Chrysler doesn't ge the deal with fiat they are going to go into bankruptcy, and they are going to do what GM did to their pension holders, they cut their pension is half and those that have not retire yet will not get a penny.

I wonder if that is the whole idea, this whole thing is just too ridiculous right now.

Obama forced Chysler into bankruptcy, they did not have to do it. Let us see how this one plays out. Get the popcorn ready!

Pretty interesting development with Ginsberg granting a stay. I don't believe I've seen anything stating the case has been "granted cert" (?). The stay could be released at any time if the whole court chooses not to hear it. I hope the full court does hear it. I actually figured that the court would just let the appellate decision stand. I'm actually pleasantly surprised that they decided to grant the stay and hope that they hear the case.

It is definitely a case made for SCOTUS review.The case will touch on contract law, property rights, capital structure and maybe even government involvement.

[edit on 8-6-2009 by jefwane]

[edit on 9-6-2009 by jefwane]

reply to post by jefwane


I heard tonight that the lawyers will petition tomorrow for writ of certiorari. I hope they receive it, and that this case is heard.

Obama is destroying the nation without benefit of law. He must be stopped.

As a lawyer I would think that Obama would understand the unconstitutionality of the gov't altering and breaking private sector contracts and agreements. Dumb...real dumb

reply to post by djvexd


Whether it's through ignorance or arrogance, he doesn't seem to care. Apparently he thinks that he is above the law.