Supremes Take On Chrysler Case…issues stay on sale of assets…unclear if arguments will be heard but sale is stayed..
Update 2: CNBC has it up:
Supreme Court Justice Ruth Bader Ginsburg has temporarily delayed Chrysler’s sale to Fiat. Ginsburg says in an order Monday that the sale is “stayed pending further order.” The action indicates that the delay may only be temporary.
Update: Indiana State Treasurer Richard Mourdouck who filed appeal is on CNBC now, he responds to Team TOTUS’ claims that if sale is not done by June 15th it will collapse as FIAT will pull out by calling BS, noting FIAT is getting the Chrysler stake FOR FREE, Uncle Sam will be giving FIAT 400million no strings, FIAT will contribute- zero dollars…..
Breaking on CNBC now…this is the appeal filed by the Indiana Pension Funds….
The U.S. Supreme Court will delay its decision on the Chrysler matter until late Monday afternoon after three Indiana state pension and construction funds filed emergency papers to block the company’s sale to Fiat. The group filed the papers on Sunday in hopes of receiving an appeal and a better deal.
An appeals court in New York approved the sale Friday, but gave objectors until Monday afternoon to try to get the Supreme Court to intervene. Chrysler wants to sell the bulk of its assets to a group led by Italy’s Fiat Group as part of its plan to emerge from bankruptcy protection.The emergency request went first to Justice Ruth Bader Ginsburg, who handles such matters from New York. She can act on her own or refer it to the entire court.
The Indiana State Police Pension Fund, the Indiana Teacher’s Retirement Fund and the state’s Major Moves Construction Fund claim the deal unfairly favors the interests of Chrysler’s unsecured stakeholders ahead of those of secured debtholders such as the funds.
The funds also challenged the constitutionality of the Treasury Department’s use of money from the Troubled Asset Relief Program (TARP) to supply Chrysler’s bankruptcy protection financing. They say the government did so without congressional authority.
Sen. Mike Johanns (R-NE) on FoxBiz on his legislation in re Congressional Oversight of TARP takeovers of private firms…
Senator Mike Johanns (R-NE) is interview on Fox Business on June 4, 2009, on his proposed legislation to assert Congressional oversight over the nationalizatoin of companies using TARP funds.
Update 2: Chrysler sale on hold for appeals court ruling: Video Update: GM, Chrysler Execs and more importantly Dealers themselves on the same panel, on the Hill now..
…The sale hearing was supposed to happen tomorrow, but it’s now on hold while the Second Circuit Court of Appeals takes a stab at the stay motion. The oral argument at the appeals court will now be on Friday. What happens next will largely depend on how the court rules. Earlier, the bankruptcy judge stated that his breakneak pace is because Chrysler is losing $100 million a day while it waits on the sale….
Video Update courtesy of the lady herself:
must see if you can CSPAN should have it
also on FOXBusiness live now..
Jim Press Chrysler President is a lying liar obfuscator of facts, evader and wielder of vague generalities and the dealers on the panel with him have made that abundantly clear..Press claims he has a log showing chrysler contacted every single dealer, the dealer on the end of the table says he has been contacted exactly once June 2 after Sen Hutchison called Chrysler for him…
I say they are lying , obfuscating facts, evading and wielding of vague generalities, these execs b/c they wont give ANY detailed explanation of metrics used to shut these dealers down, they just keep saying the auto task force was not involved at all, I call BS….ohh Fritz is getting nailed down on how much Car Czar team knew and when.
AHA now it comes Fritz was told on March 31st that they were too slow and Not Aggressive enough, uh huh, see they WERE involved, oh ches….aHA Rattner and Bloom…they cant say how much money it will save to close these dealers down….that was Sen Mike Johanns R-NE asking great questions!
Sen Hutchinson says a NEW dealer will have to be setup in Waco TX b/c all three of them were closed down…
Now Fritz says there was no cost benefit analysis done?? WTF? WTF? No cost benefit analysis of location by location, Chrysler too! wth?!
Press says only non performing dealers are closed, dealer says one guy in WVA who gets to stay open only sold 19 cars last year and has his ‘dealership’ on his front lawn, while he has been closed…
this is the last best chance these dealers have..
Sen Kay Bailey Hutchinson has their back and made Press look like the liar obfuscator he is in her sweet TX way
Amy Klobuchar is taking Press to task now for her MN dealers…
This one Chrsyler dealer his grandfather opened his dealership in 1918, kept it open thru wwii depression etc and is profitable…
check it out, will get clips up as theya re available…
Government Motors: Chrysler- Does TOTUS stand on the side of the car dealerships or the mean executives closing them…
I mean just asking..since he made clear whose side he was on last time ’round..
A very unhappy Chrysler Dealership owner on L.I. was on CNBC this morning. Despite being in the top 2% of dealers in volume he was notified he is being shutdown, the guy up the block gets to stay open and they didn’t give this guy the chance to offer to merge/buy/sell with the dealer up the block. He called it unAmerican.
This is that dealer from CNBC:
ISLAND JEEP INCORPORATED DBA ISLAND JEEP-EAGLE 26272 J
1 EAST MONTAUK HIGHWAY
LINDENHURST, NY 11757-5833
JAMES T ANDERER
See TOTUS broke Constitutionally protected contract law to side with the workers not the speculators, except these workers..this is why the government needs to stay out of it. There are a lot of franchise laws in states and minority franchises may be perceived in some cases to get preferential treatment as Congress Critters meet with the over 100 Car Dealer lobbyists who are not going away.
The dealers have promised to sue in court to fight this. Where is TOTUS to call them unpatriotic?
Here is the PDF list of the Chrysler Dealerships being closed, we are waiting for a list from GM..
They are in alphabetical order by dealer name not location so it will take a bit before we find out if there were geographical preferences given…the whole Southern state, Right to Work v Union state thing..we shall see….at first glance an awful lot of Florida dealers being closed…lot in NJ too…
..Chrysler LLC is seeking to drop 789 dealers from its retail network, according to documents filed Thursday with the U.S. Bankruptcy Court in Manhattan. The company has requested a June 3 court hearing to approve the planned streamlining, though some dealers said they would oppose being shut down. The dealer restructuring is being driven by Italian auto maker Fiat SpA, which plans to take an initial 20% stake in Chrysler when it emerges from bankruptcy protection.
Chrysler needs to pare its dealer network so that the company “can begin implementing efficiencies, marketing strategies, production plans and model changes” that will make it more profitable, the auto maker’s director of dealer operations, Peter M. Grady, said in a statement filed with the court.
..Chrysler studied the sales, locations, market shares, finances and facilities of each of its dealers to identify the strongest of its roughly 3,200 outlets, he said.
Some Chrysler dealers questioned the methodology used by the company and Fiat in their deliberations, and have vowed to battle the planned cuts. Leo Jerome, owner of Story Chrysler Jeep in Lansing, Mich., which is targeted for closure, said he has about $2 million in inventory and Chrysler informed him that the company won’t repurchase any of the cars or parts.
The auto maker said all of its dealer contracts allow the company to terminate its relationship for any reason with 30 days’ written notice.
Here is AZ:
BROTHER’S MOTORS INC DBA DIAMOND DODGE-CHRY-PLYM 68771 CDT
350 N SWITZER CANYON DR
FLAGSTAFF, AZ 86001
DARRYL R SACKS
DARNER MOTOR SALES INC DBA DARNER CHRYSLER JEEP 35058 CJ
837 WEST MAIN STREET
MESA, AZ 85201-7194
JOEL O DARNER II
JONES FORD-MERCURY, LLLP DBA JONES DODGE CHRYSLER JEEP 42779 DTCJ
781 W WICKENBURG WAY
WICKENBURG, AZ 85390
THOMAS G JONES
PERFORMANCE DODGE LLC DBA PERFORMANCE CHRY-JEEP-DODGE 44364 DTCJ
4240 W GLENDALE AVE
PHOENIX, AZ 85051-8190
WILLIAM R COULTER
22 minutes to Closing Bell…
DOW down 143 to 8369
S&P down 17 to 902
NAS down 53 to 1705
If some feisty group of bondholders doesn’t find the guts to fight the encroaching government all the way to the Supremes we are heading right off a cliff….
TOTUS and Timmeh are doing a frakkin Thelma and Louise with our economy..
Glenn Beck explains what you’re getting from Chrysler rescue plan
You Belong to Me: The Chrysler Files: Senior non-Tarp Lenders fight back, file motion citing Radford ruling…
Video Update with extended clip of the interview with Thomas Lauria in MI this weekend courtesy of MM who has it covered in detail at her place:
Clip courtesy of PaulFVillareal2:
(5.1.09) — This audio comes courtesy of The Frank Beckmann show on WJR 760 AM Detroit. Visit WJR here:
And visit Beckmann’s personal page on the WJR site here:
HA!!!!! HA!!!! Thank GAWD they are fighting back!!!!! Absolutely frakkin A right! The attorneys for the bondholders MUST WIN or American contract law is dead IMO and with it, the influx of capital to America that has always made us strong, would YOU lend your money to ANY American business if Team TOTUS can arbitrarily rule by FIAT going forward?, ha ha pardon the pun had to do it
Good song for this one is YOU BELONG TO ME, not to UAW or Uncle Sam to the Senior Bondholders!
Via HA, here is the pdf of the motion filed by Case & White (Thomas Lauria) on behalf of the Senior non TARP lenders of Chrysler who will FIGHT and NOT GO QUIETLY INTO THAT DARK NIGHT! A nice summary here under 17., of the easy peasy ruling this should be and the precedent:
17. Finally, that the Treasury Department would take these unconstitutional actions to help the United States address difficult economic times is not an answer. Indeed, the same justification was expressly rejected in Radford, where Justice Brandeis noted that a statute which violated secured creditors’ rights, but which was passed for sound public purposes relating to the Great Depression, could not be saved because “the Fifth Amendment commands that, however great the nation’s need, private property shall not be thus taken even for a wholly public use without just compensation.” Id. at 602.
Airtime: Thurs. Apr. 30 2009 | 8:08 AM ET
Senior creditors are set to make an announcement on Chrysler, stating their offer has been flatly rejected or ignored, reports CNBC’s Maria Bartiromo.
Oppenheimer, Stairway Capital and 19 other firms statement on Chrysler ….they made an offer last night and were rejected through the TARP Banks the TOTUS Car Czars would not even negotiate directly with these SENIOR holders of debt…..