June 8th, 2009
04:36 PM ET
6 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. Dutch/Bad Newz, VA

    I wonder where Judge Sotomayor stands on this issue.

    June 8, 2009 04:38 pm at 4:38 pm |
  2. Emma

    The Supreme Court needs to keep out of this. Do they want Chrysler to completely go into bankruptcy and not receive a dime, that's the next step. It is better to have something than to be greedy............. If you get a larger share it is just more of the American taxpayer dollars!

    June 8, 2009 04:40 pm at 4:40 pm |
  3. J.P.

    Doh! Rut-row Raggie!

    Bad news for Obama, the New CEO of GM and Chrysler.

    June 8, 2009 04:43 pm at 4:43 pm |
  4. The Unshrub

    They voted for Bush eight years ago, what should we expect from them.

    June 8, 2009 04:44 pm at 4:44 pm |
  5. JP

    The greedy pigs at the UAW were the single largest reason Chryster went bankrupt. Then the UAW got its bought and paid for president to give them a sweet deal they never deserved. The unions destroy the industries they work in.

    June 8, 2009 04:48 pm at 4:48 pm |
  6. phoenix86

    So it's ok to sell the Hummer to the Chinese but not Chrysler to the Italians?

    June 8, 2009 04:52 pm at 4:52 pm |
  7. Had It

    Let Chrysler go. They make a crappy product.

    If they can't make it on their own, let them go. GM too.

    June 8, 2009 04:52 pm at 4:52 pm |
  8. J.P.

    Yes, how DARE those bond holders actually demand to receive more than 29 cents on the dollar! What eeeevil greed from those eeeevil police officers and teachers who hoped to retire one day!

    I'm telling you, Obama's bumbling economically-illiterate maneuvers are going to drag him down in flames before the 2010 elections. It's going to happen and it's going to happen FAST. It's going to be a flaming, flaming burnout of historic proportions.

    Obama is going to make Carter look effective by way of comparison.

    June 8, 2009 04:53 pm at 4:53 pm |
  9. Lori reminds the GOP that Clinton and Bush had lower approval ratings than Obama and BOTH got re-elected!

    Our auto industry- yet another of many casualties of this economic crisis caused by the inept leadership of Bush and the Republicans. Thank you!

    June 8, 2009 04:53 pm at 4:53 pm |
  10. J.P.

    Hey, JP, buddy, you've stolen my moniker. :)

    June 8, 2009 04:53 pm at 4:53 pm |
  11. Anonymous

    There seems to be two options. Let Chrysler sell to Fiat, it will survive and the bondholders will at least get something. Block the sale, Chrysler will fail and the bondholders get nothing. Are the people spearheading this lawsuit Republicans? Obviously the teachers and police officers will be both Democrats and Republicans, but what about those in charge of their assets? Just wondering.

    June 8, 2009 04:56 pm at 4:56 pm |
  12. RepubliKLANs Are Stupid As Stupid Does

    Wonder why this is in the political ticker?! – CNN is seeing everything through the prism of politics these just to stay afloat with their garbage news!

    Wonder when CNN will be filing for bankruptcy...with their stale news and ratings in the tank, they should be next!

    June 8, 2009 04:56 pm at 4:56 pm |
  13. Judi Baller

    It is people like you, JP, that landed us in the mess in the first place.

    June 8, 2009 04:57 pm at 4:57 pm |
  14. Lynn

    I thought that old biddy was in the hospital!

    Another example of the rich not giving a darn about what happens to hundreds of thousands of working people who gave up a lot in order to make this deal happen.

    June 8, 2009 04:59 pm at 4:59 pm |
  15. VL- Chicago

    Finally, the equal branches of govt. stepping in to stop this tyrant Obama!! You can't just own companies Mr. President. Isn't politics as usual screwing some to benefit your backers (like the UNIONS!). Obama is trying screw bondholders (seniors, investors, middle class...) out of their savings and reward your political friends. That "isn't more of the same" IT'S WORSE.

    June 8, 2009 05:00 pm at 5:00 pm |
  16. Roger

    Our industries can be saved only if:

    1. We buy Made in USA.
    2. We learn to live within our means.
    3. No more Made in China.
    4. Stop all this Capitalism vs. Socialism Hypocrisy and Non-Sense and
    5. We need to be Self-Dependant and Self-Reliant

    June 8, 2009 05:01 pm at 5:01 pm |
  17. VL- Chicago

    Can the Obamabots quit evoking Bush's name. It's moronic. This is a stand alone situation that Obama has made happen. He has taken ownership of our car industry and given most of it to his political backers. Forget being a dem or a repub and trying be fair.
    Who said "We can't let the car companies go bankrupt!" -Candidate Barack Obama, several times on the trail. Well, he made it happen, so he could own it and give part to his friends.

    But Obamabots continue cheer and bow to King Obama!!

    June 8, 2009 05:04 pm at 5:04 pm |
  18. Hap

    Its like who cares about the secured creditors or investors? This is exactly why I will not invest in companies with large union participation. They are horrific investments. Let it go thats fine. My company buys 8-12 trucks every three years and we sure won't buy Chrysler or GM anymore. Toyota and Ford make fine vehicles and even better are not majority owned by the government.

    June 8, 2009 05:05 pm at 5:05 pm |
  19. RepubliKLANs Are Stupid As Stupid Does

    let's just say the surpreme court is just being greedy!!!...just like justice Roberts; always demanding for higher pay and now demanding for a higher sales price from FIAT.

    maybe they can sell it to the chinese...bush & his lackeys in the supreme court – roberts, alito – has alot of cronies in china and that's why GW went to the Olympics & danced his behind off!

    June 8, 2009 05:06 pm at 5:06 pm |
  20. Zero.

    Why. Your in deep trouble.

    June 8, 2009 05:06 pm at 5:06 pm |
  21. cfoster

    I think it is funny that the GOP is using the treasurer of Indiana to do the dirty work of trying to block this deal. The GOP does not care if millions of more people are out of work. The GOP only cares about the rich and big corporations. If the GOP were stimulating the ecoomy it would have been 787 bilios in tax breaks for rich people. Just like they will never back a reform of the healthcare system because their base of rich people and big insurance companies will ever allow it to happen. The GOP wants us to live in a country that is the Christian version of Iran. The GOP wats us to be uneducated, have no jobs, no hope and live in fear. Beside most of the people on welfare are Republicans no matter the lies Fox News, Rush or Hannity tells us..

    June 8, 2009 05:07 pm at 5:07 pm |
  22. Roger

    DEPRESSION IS COMING BY 2011. GET READY FOLKS.

    Does Obama have an Answer to:

    1. How to create Manufacturing Jobs.
    2. How to rebuild our Auto industries.
    3. How to end the wars.
    4. How to export more than imports.
    5. How to rebuild textile and steel industries.
    6. How to regulate Banking.

    We are in a RECESSION and We will have a DEPRESSION which is coming soon by 2010 or 2011.

    June 8, 2009 05:09 pm at 5:09 pm |
  23. Ken in NC

    Hey all you Bondholders of Chrysler debt. You are getting .29 cents on the dollar but if the Supreme Court causes the Fiat deal to go south and they pull out then the end results will be the liquidation of Chrysler and you get even less and maybe nothing.

    You and the money minded people have only an interest in your own profits. That is what they are paid to have an interest in and I have no problem with that but when a company goes into Bankruptcy, the Bankruptcy Judge has control over who gets what in the reorganization or liquidation and now you have sent the message that the Judge no longer has the power to make decisions. This will be detrimental to our system. Your firms made an investment that carried risk. You took a chance and lost. It is terrible and sad but what you are doing now is insuring that more will be lost than money. Jobs and livelihoods will be lost because you are going to cause the liquidation of the company and at the same time your 29 cents will probably drop to zero or 5 cents on the dollar. Remember the golden rule. IF YOU CANNOT AFFORD TO RISK OF LOSING THE INVESTMENT THEN YOU DO NOT NEED TO MAKE IT.

    June 8, 2009 05:09 pm at 5:09 pm |
  24. David from WI

    'The Supreme Court needs to keep out of this. Do they want Chrysler to completely go into bankruptcy and not receive a dime, that's the next step. It is better to have something than to be greedy…………. If you get a larger share it is just more of the American taxpayer dollars!'

    That's right, just as when FDR and Harry Truman when they had supreme court fights over similar cases and they won.

    Oh wait, no, they didn't win their cases before their supreme courts.

    It turns out the executive branch of the govt doesn't have the power to do many of the things it is trying to do with GM and Chrysler.
    Such a pity when the constitution and the laws of the United States get in the way.
    Turns out the executive branch of the govt isn't as powerful as Obama thinks they are.
    Those annoying laws, that pesky constitution and the legal precedents of at least two former supreme court decisions are so annoying.

    June 8, 2009 05:09 pm at 5:09 pm |
  25. Frank, Las Vegas

    The court is going to allow failure of Chrysler and thousands of jobs for one group? Don't the judges know what's on in the country?

    June 8, 2009 05:10 pm at 5:10 pm |
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