June 8th, 2009
04:36 PM ET
5 years ago

High court delays sale of Chrysler assets to Fiat group

The Supreme Court has delayed the imminent sale of most of Chrysler's assets to a group led by Italian automaker Fiat.
The Supreme Court has delayed the imminent sale of most of Chrysler's assets to a group led by Italian automaker Fiat.

WASHINGTON (CNN) - The Supreme Court has delayed the imminent sale of
most of Chrysler's assets to a group led by Italian automaker Fiat.

The justices issued a brief order Monday, just before a temporary stay issued by a lower court was to expire.

Three Indiana state funds - representing police officers and teachers - filed an emergency appeal late Saturday asking the high court to intervene. Those lenders seek greater compensation for their share of Chrysler's nearly $7 billion in secured debt.

The financially troubled domestic automaker is expected to emerge soon from bankruptcy, and the company is pinning its future on the restructuring plan pushed by the White House.


Filed under: Supreme Court
soundoff (57 Responses)
  1. Dan

    If you make a bad investment, you can lose your money. That's the way that it works.

    June 8, 2009 05:48 pm at 5:48 pm |
  2. a little sad

    What I would like to know is:

    1 – If the company goes through liquidation, what would the bondholders get?

    2 – What price did the bondholders pay in the first place? are they getting 29% of facve amount? how muhc of a discount did they buy the bonds with initially? Were they investment grade or junk-bond grade at the time of purchase?

    June 8, 2009 05:49 pm at 5:49 pm |
  3. VL- Chicago

    Robin–Great point. The marriage between private sector and government is creepy and disgusting. Private companies fail... they fail. Oh well! If I get paid too much at my job, then my company makes less money. These union employees make way more than market value for their jobs. If companies overpay their people, they will not be able to compete. This is what happened to the car industry.
    .King Obama doesn't get that.

    June 8, 2009 05:52 pm at 5:52 pm |
  4. Jason

    "restructuring plan pushed by the White House"

    How scary is that.

    June 8, 2009 05:54 pm at 5:54 pm |
  5. Dan

    The stupidity of some people is only eclipsed by their ignorance. Hey J.P. If Obama and congress didn't bail out Chrysler those teachers and police officers wouldn't be getting 29 cents on the dollar. They'd be getting nothing. By the way, where I'm from, teachers make an average of $75,000 a year, and they get full benefits while they work, and after they retire. Police officers make an average of $100,000 a year with full benefits while they work, and after they retire. So no one around here would be crying for these groups.

    June 8, 2009 05:54 pm at 5:54 pm |
  6. David from WI

    "If you make a bad investment, you can lose your money. That's the way that it works."

    If you buy bonds in a company and it goes into bankruptcy there are RULES AND LAWS that apply and have to be followed.

    You can not just make it up as you go.

    You have a BOND with that company and CONTRACT that must be observed. The FINE PRINT that can not simply be ALTERED at the whim of a politician ANY POLITICIAN.

    Bankruptcy has RULES that are followed and are backed up by LAWS.

    It could put the whole confidence of contracts into doubt.
    THAT'S WHY CONTRACT LAW IS PART OF THE CONSTITUTION

    June 8, 2009 05:55 pm at 5:55 pm |
  7. skyhawkdriver

    That's right folks..keep blaming it on bush and the republicans..it has nothing to do with uaw workers making 50 buckas an hours while standing around scratching their butts..getting paid for not working..making poorly built crap automobiles..what is the largest selling automobile in this country today??..the ford f-150 pickup..and how much money did the government bail out ford with??..chrysler and government motors are years behing in quality and design..now the bert and ernie administration have spent billions of our tax dollars to prop up companies that should have been allowed to go bankrupt on their own..

    June 9, 2009 01:34 pm at 1:34 pm |
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