U.S. high court asked to block Chrysler sale

[IDemo]

Source: Associated Press

updated 37 minutes ago

NEW YORK - 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 Sunday to put the sale on hold so they can pursue an appeal.

The federal appeals court in New York approved the sale Friday, but gave objectors until Monday afternoon to try to get the Supreme Court to intervene. Chrysler wants to sell the bulk of its assets to a group led by Italy's Fiat as part of its plan to emerge from bankruptcy protection.

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.

Read more: http://www.msnbc.msn.com/id/31121449 /

[ddiver]

1. Fiat has not been forthcoming with financial documents.

http://online.wsj.com/article/SB124424451815990495.html

An internal memo 13 days later from Chrysler's advisory team also said Fiat's "off-balance-sheet investments" in joint ventures around the world posed an economic risk and a political risk," including the appearance that "Treasury/Chrysler" was "in bed with a shady partner."

[Fluffdaddy]

2. New York Times link

http://www.nytimes.com/aponline/2009/06/07/us/AP-US-Sup...

[MercutioATC]

3. I say we wash our hands of it.

Cut off the funds completely, let a bankruptcy court liquidate it, and take whatever we're entitled to (probably nothing, since we so wisely chose to convert our holdings to common stock).

[DainBramaged]

4. I wonder if the Asian competition is planting seeds of doubt

to yet again undermine another competitor??? Just sayin'.

[Yupster]

5. This is pension funds suing because

their bonds haven't been treated like bonds are supposed to be treated.

At least they were treated better than the GM bondholders. They'll no doubt be suits about that too.

[Sen. Walter Sobchak]

6. the mistreatment of the bond holders is insanity

It only lays the groundwork for more essential bailouts in the future - who the fuck is going to extend financing to a struggling American business if the very concept of being a "secured creditor" no longer exists in America?

And that can only mean... MORE GOVERNMENT BAILOUTS!