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….

Background:

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.

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June 8, 2009. Tags: , , . Economy, Entertainment, Finance, Motown, Music, Obama Administration, Politics, Popular Culture, TARP, Uncategorized, Wall St.

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