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Foes Ask Supreme Court to Block Chrysler-Fiat Deal

By the Associated Press

Posted Jun 6, 2009 11:49 PM CDT

(AP) – 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.

The Fiat logo.
The Fiat logo.   (AP Photo/Luca Bruno, file)
New vehicles line the lot at Great Northern Dodge in North Olmsted, Ohio Thursday, May 14, 2009. Great Northern is one of 789 dealerships Chrysler wants to eliminate.
New vehicles line the lot at Great Northern Dodge in North Olmsted, Ohio Thursday, May 14, 2009. Great Northern is one of 789 dealerships Chrysler wants to eliminate.   (AP Photo/Mark Duncan)
The Chrysler emblem.
The Chrysler emblem.   (AP Photo/Keith Srakocic)
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