U.S. Supreme Court Halts Fiat’s Purchase of Chrysler

There’s a new hurdle in Fiat’s purchase of the “new” Chrysler: the U.S. Supreme Court. The ultimate judicial review panel in the nation put the kibosh on the sale this afternoon, at least temporarily.

As earlier reported, representatives for Indiana’s state pension fund objected to the bankruptcy proceedings, stating that unsecured creditors were given priority over secured creditors. Indiana’s fund reportedly represents $42 million of the $6.9 billion debt attached to Chrysler’s operations.

Earlier court motions, including one filed at a New York appellate court last week, ultimately found in favor of Chrysler. Indiana’s filing with the Supreme Court was seen as Indiana’s “last chance” at halting the sale.

The order, signed by Justice Ruth Bader Ginsburg this afternoon, effectively stays the appellate decision “pending further order…of the Court.” Depending on what further actions conspire, this halt could be merely temporary or force a complete revision of Chrysler’s Chapter 11 bankruptcy proceedings.

Source: Detroit Free Press


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