The state of Indiana has a big problem with Chrysler's bankruptcy proceedings. Indiana state treasurer Richard Mourdock explained that "Indiana retirees and Indiana taxpayers have suffered losses because of unprecedented and illegal acts of the federal government." The home of the Indianapolis 500 has $42 million worth of retirement funds invested in the Pentastar; less than 1% of the $6.9 billion in secured debt owed by Chrysler. Indiana's appeal of the Fiat sale officially puts any deal with the Italian automaker on hold until a resolution has been made.
Veteran bankruptcy judge Arthur Gonzalez couldn't disagree with Mr. Mourdock more, saying ""the Court finds that all relevant standards have been established to grant the relief requested." By "relief," Judge Gonzalez is likely talking about Fiat and its ability to take ownership of Chrysler.
Though $42 million doesn't buy a lot these days, the state has the right to fight the bankruptcy. Whether the midwestern state wins its case is another matter all together.The New York Court of Appeals hearing of the state of Indiana's objection to the Chrysler bankruptcy hearing is widely viewed as little more than a formality. Chrysler's bankruptcy has gone very smoothly thus far, and with the backing of plenty of rock-solid legal types in the White House, it is now looking more and more likely that Chrysler will indeed exit bankruptcy in around 60 days.
[Source: The Detroit Bureau]