Supreme Court Delays Chrysler’s Sale to Fiat

     (CN) – The U.S. Supreme Court on Monday agreed to delay Chrysler’s sale to Fiat while two Indiana pension funds appeal it. In a one-sentence order, Justice Ruth Bader Ginsburg stayed the rulings of the bankruptcy judge who allowed the sale, “pending further order of the undersigned or of this Court.”

     The funds also challenged the constitutionality of using Troubled Asset Relief Program money to help finance the Chrysler deal without congressional approval.
     Indiana police and teachers and a third appellant, a state construction fund, claim that the sale – approved by a federal appeals court in New York on Friday – unfairly favors unsecured stakeholders ahead of secured debt holders such as the funds.
     The 2nd Circuit approved the deal Friday, but gave objectors until noon Monday to appeal. The Indiana groups filed emergency papers on Sunday.
     Chrysler wants to close the lead by June 15, or the Fiat-led buyers have an option to walk away from it.
     Ginsburg’s order gives her or the full Supreme Court time to review the case while the funds appeal.

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