Supreme Court puts Chrysler sale on hold

They actually are doing the right thing...I can't believe it!
Supreme Court puts Chrysler sale on hold
High court issues a stay of the sale of Chrysler to the Italian automaker, delaying Chrysler's exit from bankruptcy.
By Chris Isidore, CNNMoney.com senior writer
June 8, 2009: 4:27 PM ET

NEW YORK (CNNMoney.com) -- The Supreme Court threw a wrench into the plans to have a quick bankruptcy process at Chrysler LLC, delaying the company's combination with Italian automaker Fiat.

The bankruptcy judge overseeing the Chrysler case had given approval for the company's most valuable assets, such as plants, dealerships and contracts, to become part of a new company in which Fiat would hold a significant stake.

But the Supreme Court, in an order issued late Monday, granted a request for a delay of that approval sought by Indiana state pension funds, which had argued that they and other lenders deserved better treatment by the bankruptcy court.

The Obama administration has stated that Chrysler is no longer viable as a standalone company and that it must join with Fiat in order to justify additional federal tax dollars needed to keep the company alive.

Chrysler's top executives have argued in court filings that a long delay in approving a deal with Fiat could kill the company by forcing its suppliers to go out of business and leaving dealers without the parts they need to repair Chrysler vehicles on the road.

Chrysler had no comment about the Supreme Court's ruling. Fiat could not immediately be reached for comment. To top of page



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