Foes Ask Supreme Court to Block Chrysler-Fiat Deal

By Newser Editors and Wire Services
Posted Jun 6, 2009 11:49 PM CDT
The Fiat logo.   (AP Photo/Luca Bruno, file)
camera-icon View 2 more images

(Newser) – Opponents of Chrysler's sale to Fiat are asking the Supreme Court to block the deal. Three Indiana state pension and construction funds filed emergency papers at the high court early today to put the sale on hold so they can pursue an appeal. The emergency request goes first to Justice Ruth Bader Ginsburg, who handles such matters from New York. She can act on her own or refer it to the entire court.

The federal appeals court in New York approved the sale Friday but gave objectors until Monday to try to get the Supreme Court to intervene. Opponents claim the deal unfairly favors the interests of the company's unsecured stakeholders ahead of secured debtholders such as themselves. They also challenged the constitutionality of the Treasury Department's use of TARP funds to supply Chrysler's bankruptcy protection financing. (Read more Chrysler stories.)