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. Tom in CA

    I hope that Fiat pulls out of the acquisition. This would cause a fire sale for all of Chrysler's assets; whereby, Fiat could come back later, pay less for them than they would now and these greedy bondholders will get even less or nothing.

    Of course, the taxpayer would be off the hook for any additional funding. We've already flushed too much money down the Chrysler toilet.

    June 8, 2009 05:10 pm at 5:10 pm |
  2. VL- Chicago

    Hey- "Lori reminds the GOP that Clinton and Bush had lower approval ratings than Obama and BOTH got re-elected!"
    It's been 5 months, and King Obama has tripled the debt, smashed the constitution and nationalized businesses. Wake up and get a job, quit hoping for handouts.

    The problem with America is we have 20% of the people that are lazy, dumb and want nanny govt. to help. I would suggest to go to school, don't have kids at 20, and work 2 jobs.

    Oh, then read the story of the constitution.

    June 8, 2009 05:10 pm at 5:10 pm |
  3. red state Tenn

    We have bankruptcy laws, even the libs on the high court will have a hard time not seeing through this. The secured creditors should get 100% of there money. The UAW should have to take big big cuts in orded to see the creditors get there money.

    June 8, 2009 05:11 pm at 5:11 pm |
  4. RealityKing

    I will NEVER buy a another GM or Chrylser. What a fool I was to believe I was actually supporting America in the first place.

    So bring on the Chinese cars..., might as well hurry the inevitable by sending my dollars straight to the horses mouth.

    June 8, 2009 05:12 pm at 5:12 pm |
  5. ann

    Funny how many liberals were in the congress who backed all these messes over the past 8 years and now waste time trying to blame it all on the conservatives instead of trying to come up with ways to fix it without spending the US into incredibly deep debt. Blame it all on Bush if you like but the blame lies equally to both sides of the aisle. Throwing more money at the problems don't make the problems go away. Thank God, Ruth Ginsberg is looking at things with an open mind and is questioning whether it's fair for the dealers to go into bankruptcy while the parent company of Chrysler walk away with a sweet deal. All you haters out there need to open your minds and try to see things fairly instead of just the way you want to see it. You spend all your time jumping all over the blogs , wasting hatred on the conservatives and you pay little attention to the news stories that really affect all Americans and you don't have sense enough to comment on the things that really matter. I feel sorry for you that you have to live with so much hatred inside.

    June 8, 2009 05:12 pm at 5:12 pm |
  6. Hammer

    Do you think that the wokring class might get a ruling in their favor? How will Abomination explain to the UAW that some of the money will be paid to the retirement funds for widows and orphans?

    June 8, 2009 05:12 pm at 5:12 pm |
  7. Gary

    1. I agree with the debt holders, they have right to more share ownership in exchange for their debt paper.

    2. The Union has NO standing to receive ANY shares in the new post-bankruptcy company. This is a Union Rip off.

    3. I also do not think that merging with Fiat is the only option for survival. A good management team that can hold down executive pay (max $750K/year) along with a reasonable Union that acknowledges that pay, pension and health benefits all need to be cut 15 to 20% across the board could save Chrysler and keep manufacturing jobs in the US. Think about it!

    4. The US government has to STOP give taxpayer money to these companies. They can survive on their own but will probably be 60% of their current size which will be similar in size to many other successful car companies.

    June 8, 2009 05:14 pm at 5:14 pm |
  8. Mike in SA

    Yeah, those rotten police officers, teachers, and little old ladies...how dare they! Who do they think they are, trying to get a fair deal when that might keep UAW workers from retiring with full pay and benefits at 50!

    June 8, 2009 05:16 pm at 5:16 pm |
  9. Tony

    I love the hateful Obamabots, they're so pathetic! They're so mindless and stupid that "blame Bush" is a knee jerk reaction. *LOL* Yes, it's never you fault. Bush did everything! *LOL*

    This one's all on Obama's plate and it's 100% his fault. This is going to end with liquidity, which is should've all along. I'm glad that the Supreme Court told Obama to shove it where the sun don't shine. That's what he gets for trying to tell the Supreme Court what to do. Between this and the Don't-Ask-Don't-Tell case, that's two Supreme Courts matters in one day that Obama has tried to tell them what to do.

    June 8, 2009 05:19 pm at 5:19 pm |
  10. Obama Victim

    Court and Law 1 Obummer 0

    June 8, 2009 05:19 pm at 5:19 pm |
  11. David from WI

    '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?'

    Let it be a typical LEGAL, CONSTITUTIONAL bankruptcy not a manufactured ILLEGAL one!!!!

    We live under laws not the 'insight' of the executive branch of the U.S. Govt.
    Those teachers and police retires whose pensions are based on Chrysler bonds in Indiana are just greedy irrational troublemakers.

    June 8, 2009 05:25 pm at 5:25 pm |
  12. VL- Chicago

    Have any Obamabots ever studied American history? it's called checks and balances...equal branches of power....ring a bell??
    Also, IT WAS JUSTICE GINSBURG that gave this ruling...the biggest liberal on the court. She is a liberal but still a follower of the constitution. The answer is and always should be less federal power, less taxes and more states and local rights. Wake up and shake out of your Bush hate and Obama worship and review each piece of legislation!

    June 8, 2009 05:26 pm at 5:26 pm |
  13. Sotomayor is for teachers and Policemen being paid full in chrysler cars

    Sotomayor wants everything for the teachers and Policemen or nothing. Sotomayor would rather the sale to the Italians stopped, or if it goes head anything made must go to the bondholders.

    Alternatively, Let Chrysler produce their usual cars and Allow Bondholders to grab one or two Chrysler cars in exchnge for their debts, and whatever is left over goes to the shareholders.

    All debtors must accept products for payment.

    June 8, 2009 05:27 pm at 5:27 pm |
  14. El Sotp

    Sotomayor for teachers and Policemen being paid the full value of their money in chrysler cars.

    June 8, 2009 05:29 pm at 5:29 pm |
  15. Bob

    The company is worth nothing since their stock holders let the white collar workers run the company into the ground. If Chrysler goes bankrupt with out help, they will not have honored WARRANTIES, and therefore, no one will buy even the clearance sale vehicles. It will NEVER escape from bankruptcy then. It will just die.

    June 8, 2009 05:32 pm at 5:32 pm |
  16. John-Black Hills/SD

    Why is Chrysler our problem, Chrysler is owned by private investors. The owner is "Cerberus" and this creepy cast of ghouls are the wealthiest private equity fund in the world! Guess who the CEO is at Cerberus, John Snow. John Snow was GW Bush's Treasury secretary, the guy who screwed the pooch with his inept management of economic oversight that led us here...Let Cerberus document a loss, let's make them pay up their fair share, their fair share is all of it.

    June 8, 2009 05:32 pm at 5:32 pm |
  17. Robin

    @Lori reminds the GOP that Clinton and Bush had lower approval ratings than Obama and BOTH got re-elected! June 8th, 2009 4:53 pm ET

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

    Since when is a President responsible for the actions of a private company? Private...i.e not government owned?

    June 8, 2009 05:35 pm at 5:35 pm |
  18. Ricky

    Enough–let it go under and then everyone gets nothing.

    June 8, 2009 05:35 pm at 5:35 pm |
  19. papau

    Today Dana Bash on CNN says "Democrats need at least some Republican support in order to move their bill through Congress"

    Also the GOP's "public plan puts gove between doctor and patient "

    as if the ins co is not now "between doctor and patient"

    She has noted the GOP idea that Gov plans are doomed to failure – and not noted that if that is the case why worry about the gov plan since it is not being imposed on anyone.

    Now you report on Fiat – with no mention of Fiat's right to just go walking away from the agreements if this takes more than 10 days.

    Why would anyone believe your reporting.

    June 8, 2009 05:39 pm at 5:39 pm |
  20. Ed

    Why? It's about the only thing that's made any sense in the US auto industry in years.. Downsizing cars leads to lower emissions you doofs.

    June 8, 2009 05:40 pm at 5:40 pm |
  21. Jon

    I still find it funny that people think our econimic problems began 8 yrs ago. The economy was tanking when GW took office. He didn't cut taxes enough or any federal spending (increases ftl), so it was stalled for 8 yrs. Our economy ran great post WWII because our factories did not get bombed. Then we were fortunate enough to live off a silicon valley boom in the 80s (helped by cut taxes) and internet boom in the 90s. That internet boom also gave away our biggest advantage, knowledge. Now people around the world who care and want to work hard can surpass our lazy, government subsidized, fat asses.

    If you want to fix the problem, go back to states rights and limited federal government, something neither party and their 40 yr congress terms with incentives from lobbyists are for.

    June 8, 2009 05:40 pm at 5:40 pm |
  22. David from WI

    I guess the police and teachers unions in Indiana didn't give as much to the Obama election fund as the UAW union (not to be confused with the actual WORKERS of Chrysler and GM)

    Remember when Obama was going to strong arm the bond holders to 'take the deal'

    Turns out the bond holders were not all greedy stereotypical rich white men but POLICE retirees, TEACHER retirees and LITTLE OLD LADIES in Indiana whose bonds were a large part of their RETIREMENT FUNDS.

    Turns out the rich vs poor Manufactured conflict is as phony and as it very well will be shown by the United States Supreme Court as illegal as the Manufactured ILLEGAL bankruptcy.

    Use the same rules and laws as any other Bankruptcy!!!!!
    Oh wait, where is the political capital to be gained from that.

    June 8, 2009 05:41 pm at 5:41 pm |
  23. Tired of stupidity

    @ Roger

    Your right on it !!

    June 8, 2009 05:43 pm at 5:43 pm |
  24. Joe, Georgia

    It is really unfortunate that the State of Indiana is taking this action forward. Other than brand value, there are no substantial assets in Chrysler to pay off bond holders. The debt load is much too high and as a purchaser of junk bonds the Indiana pension fund managers knew very well that they were making a highly speculative investment. If they succeed in this action, the 29 cents on the dollar will be gone and virtually nothing will be recovered in liquidation after payment to all the lawyers, administrators and bankrupcy trustees. This could create a very bad day for every investor, vendor and worker associated with Chrysler when liquidating the minimal assets of this formerly great Company.

    June 8, 2009 05:45 pm at 5:45 pm |
  25. MK

    VL- Chicago June 8th, 2009 5:10 pm ET

    Hey- "Lori reminds the GOP that Clinton and Bush had lower approval ratings than Obama and BOTH got re-elected!"
    It's been 5 months, and King Obama has tripled the debt, smashed the constitution and nationalized businesses. Wake up and get a job, quit hoping for handouts.

    The problem with America is we have 20% of the people that are lazy, dumb and want nanny govt. to help. I would suggest to go to school, don't have kids at 20, and work 2 jobs.

    Oh, then read the story of the constitution.
    ---------------------------------
    Read the Constitution? Where in the hell were you the last years? Tripled the debt? Your guy did that. Bush fanatics never cease to amaze me. He was a complete and utter failure and you can't stand the fact that Presdident Obama is more of a leader than Bush ever could be. You all disgust me.

    June 8, 2009 05:46 pm at 5:46 pm |
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