• Jun 8, 2009
The sale of Chrysler's assets to Fiat have been delayed by Supreme Court Justice Ruth Bader Ginsburg after three Indiana state pension funds lost their case in New York and filed papers with the highest court the land. Early reports indicate that this is only a temporary stay, with Ginsburg saying the sale is "stayed pending further order." Chrysler's lawyers have said the stay could cause the deal with Fiat to go under.

[Source: Freep]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 39 Comments
      • 5 Years Ago
      This case needs to go before the full US Supreme Court to set a precedent for these auto CH-11 cases and GM (too BIG too fail?) Plus, WE need some checks-n-balances between the democrats in Congress and pres. Obama... too much un-checked power in the hands of the democrats. We need the Supreme Court to intervene and validate things are getting done right... haste makes waste Pres. Obama!!! Its OK to slow this down a little and review what is happening and protect our constitutional rights!!!
        • 5 Years Ago
        LOL you think the courts are going rewrite bankruptcy laws just to "check" the Obama admin? I thought you rethuglicans were against activist judges? And what the hell are you ranting about?? Everything done so far is completely "constitutional", maybe you should research exactly what happens in Chapter 11 bankruptcy.

        The Fiat deal will go through in the next month, what are you going to rant about then?
      • 5 Years Ago
      Anybody notice that now the government has pumped a ton of cash into these companies, people now want to force Chapter 7.

      I guess people can't quite make the connection as to whose money these lawyer's are going for.
      • 5 Years Ago
      HA HA! Obama and his socialist buddies must be pissed!

      You CANNOT rewrite contracts, de-value bonds, etc. and get away with it.

      Everyone could see what was going on, about time someone noticed and stopped it - at least temporarily.

      Obama you wanker.

      Another victory for capitalism, it ain't dead yet!

      I hope the deal doesn't go through, screw fiat. Another foreign company trying to get its hands on our assets. Interesting how all these American companies are being split up or bought by foreigners eyyy?

      Just look at budweiser. They are all scrambling to get out of the way of the collapsing economy, once they do - Obama and his Bilderberg buddies will tank the dollar and usher in the new North American Union.

      Too bad the Supreme Court stopped it! Ha! Now lets see just how powerful and unbiased they really are or are they in their back pockets too?
        falcon5768
        • 5 Years Ago
        um yes they can "Debtors in Chapter 11 have the exclusive right to propose a plan of reorganization for a period of time (in most cases 120 days). After that time has elapsed, creditors may also propose plans. Plans must satisfy a number of criteria in order to be "confirmed" by the bankruptcy court. Among other things, creditors must vote to approve the plan of reorganization. If a plan cannot be confirmed, the court may either convert the case to a liquidation under Chapter 7, or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to nonbankruptcy law in order to satisfy their claims."

        Too bad your not smart enough to know what you are talking about. This will go right through no problem in a matter of days I bet.
      • 5 Years Ago
      If the deal goes south the taxpayers will save a ton of money.
        • 5 Years Ago
        Wrong. We'd shell out at least $25Billi in unemployment insurance, not to mention the damage it would cause to city and state budgets when all those Chrysler employees can't support businesses in their community. But ignorance is bliss, ain't it?
      • 5 Years Ago
      Justice Ruth Bader Ginsburg????, once the full court gets to vote on this the deal will be stopped.

      I for one think that deal should go thru, but SC should allow parties that suffered damage to sue the perpetrates, FEDERAL GOVERNMENT for money lost as well as punitive damages.
        • 5 Years Ago
        Ginsberg is the last SC justice I'd expect to see throwing wrenches into Obama's deals. Wow!
        • 5 Years Ago
        No surprise. Ginsburg is affiliated with the states involved in this, it was already expected that she, if anyone, would be the one to take a look at this. That said, the SC will not allow a major employer like Chrysler to liquidate simply to appease a few creditors, that is NOT the precedent they're interested in setting.
        • 5 Years Ago
        Um why? it's not the fed's fault chrsyler ran themselves into the ground. if they hadn't stepped in, chrsyler would be gone by now. Unless you, like our other commenter’s in the Gm thread, know of some magical mystical funding option for Chrysler that would have prevented them from imploding, not yet reveled to anyone for mysterious reasons.
      • 5 Years Ago
      What Falcon said. Some people need to research or at least TRY and educate themselves before they embarrass their party anymore.
      • 5 Years Ago
      Nope. The feds will be out all investment so far, and all "making whole" funds will come from the dole. Unless of course the receiver is prepared to accept 100K Avengers which may suddenly become several tons of scrap. A few CDSs may be out there as well.

      In addition, 100% of all GM and Chrysler dealers will lose those franchises. All factories become nothing more than unsellable superfund sites.

      This isn't about "fairness" or any of that other claptrap. This is about Mourdock making a name for himself and running for Governor in '12.
      • 5 Years Ago
      Bye-Bye Chrysler! Hello TM and F FTW!!!

      One down one to go!
      • 5 Years Ago
      bye bye Fiat 500
        • 5 Years Ago
        Aznauto: evidently you have a vested interest in posting that opinion, because the Fiat 500 is far better than anything from those manufacturers at any size. Sheesh, even the old wedge-shaped Cinquecento was better!
        • 5 Years Ago
        No worries. If the Chrysler deal falls through, you'll see a Saturn 500 in 18 months. ;)
        • 5 Years Ago
        "what's so great about it Daewoo, Kia, Hyundai, Tata, Suzuki all have better sub compacts than Fiat 500?"

        Some people talk out of their backsides - the 500 has excellent chassis dynamics as well as brilliant engine units.
        • 5 Years Ago
        what's so great about it Daewoo, Kia, Hyundai, Tata, Suzuki all have better sub compacts than Fiat 500?
      • 5 Years Ago
      Pres Obama just got his first "spanking" by the Supreme court... good! This deal was going to quick and was avoiding "due process of law for the secured bond holders". Watch GM's bondholders file the same motion... UAW is about to get screwed... good!!
        • 5 Years Ago

        Oh, it's a lock that something like this will happen in the GM deal. They think this will be a quickie but I have a feeling it's going to get messy. I bet it's Dec or early '10 before GM's deal is finished.
        • 5 Years Ago
        Maybe so, but won't fans of GM and Chrysler (yes there are some still) get screwed even more if this cause one or both companies to go C7? Or will the feds cough up more money to the bandholders to buy them off?
        • 5 Years Ago
        I think Gov will buy out the bondholders, they do not need to buy out everyone, because banks that got bailout agreed to go to CH11, because they are on bailout they will not go back and ask for liquidation. Government will just have to buy out few who oppose.
      • 5 Years Ago
      Didn't court docs say that they could expect only $800 million in liquidation? Chrysler had been looking for buyers every which way in the months leading up to C11 and couldn't find anyone. These bond holders would get squat compared to what they're being offered right now. I don't get it.
        falcon5768
        • 5 Years Ago
        They are betting on getting more. In all likelihood they wont and will actually get LESS or the same amount in the end, but its a bet they are willing to take.

      • 5 Years Ago
      If the Fiat deal gets canceled,Chrysler will likely be dead.
    • Load More Comments