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Can't find and article on it yet - just heard it on the news. Here is whatthe appeal was....and it is being reported that it is currently blocked.

 

U.S. Asks High Court to Permit Chrysler Sale to Fiat (Update1)

By Greg Stohr

 

June 8 (Bloomberg) -- The Obama administration and Chrysler LLC urged the U.S. Supreme Court to let the automaker sell its assets as early as today to a group led by Italy’s Fiat SpA.

 

Opponents of the sale, including three Indiana pension funds, have asked Justice Ruth Bader Ginsburg to halt the deal, which could be completed as soon as 4 p.m. Washington time.

 

Chrysler argued in court papers that a stay “will, in practical effect, kill the Fiat sale and lead to a liquidation.”

 

Solicitor General Elena Kagan, the administration’s top courtroom lawyer, said in legal papers filed with the high court that consummation of the sale wouldn’t unfairly harm creditors.

 

The bankruptcy judge who approved the deal concluded that “creditors would receive no more under a liquidation than the $2 billion that the sale will produce,” the government’s legal brief said.

 

The Indiana pension funds and other opponents of the sale want an order blocking the transfer until the high court decides whether to review their appeal.

 

The funds said in court papers they would suffer “irreparable harm” should the sale go forward.

 

A federal appeals court in Manhattan on June 5 upheld a bankruptcy judge’s ruling letting the sale proceed, while ordering the decision put on hold until 4 p.m. today to let the creditors appeal to the Supreme Court. If the justices deny a stay sooner than that, Chrysler can complete the sale immediately.

 

Full Court Consideration

 

Ginsburg, who handles emergency matters from the New York- based court, can either act on her own or refer the matter to the full nine-member court. The votes of at least four of the nine justices are required for the Supreme Court to consider the appeal.

 

The Indiana funds, holding $42.5 million of $6.9 billion in Chrysler secured loans, contend the Fiat deal is a misuse of the Troubled Asset Relief Program, which they say was intended for financial institutions, not carmakers.

 

The outcome of the appeal may influence the reorganization of General Motors Corp., which plans a similar quick sale of its best assets. Chrysler and General Motors have taken around $25 billion in bailout loans and want about $40 billion more to complete their reorganizations.

 

The June 5 appeals court ruling “does set a precedent that the structure of this quick sale is acceptable, and that will help GM and discourage appeals,” said Seton Hall University bankruptcy law professor Stephen Lubben.

 

$2 Billion in Financing

 

The sale would be financed with $2 billion from the U.S. and Canadian governments, which would take equity stakes in the new Chrysler along with Fiat and a worker health-care fund.

 

Chrysler has said it may have to liquidate should the sale be rejected, eliminating 38,500 of its jobs. The deal would transfer its Jeep, Chrysler and Dodge brands to a new company stripped of most debt so it can be competitive.

 

The case is In re Chrysler LLC, 09-50002, U.S. Bankruptcy Court, Southern District of New York (Manhattan). The appellate case is In re Chrysler LLC, 09-2311-bk, U.S. Court of Appeals for the Second Circuit (Manhattan). The Supreme Court application is Indiana State Police Pension Trust v. Chrysler, 08A1096.

 

To contact the reporters on this story: Greg Stohr in Washington at gstohr@bloomberg.net

 

Last Updated: June 8, 2009 12:18 EDT

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Here we go...

 

Stay Issued in Chrysler Sale; High Court to Hear Case

Kathryn Glass

FOXBusiness

 

U.S. Supreme Court Justice Ruth Bader Ginsburg issued a stay in the Chrysler hearing, delaying its proposed sale to Fiat.

 

The Supreme Court extended the current stay on the sale to here arguments against the merger, at the behest of groups that comprise Chrysler’s senior secured lenders. The primary opponents of the deal include three Indiana employee pension funds, the widow of a Chrysler employee and several consumer advocacy organizations who filed emergency applications to the Supreme Court Saturday.

 

The stay will allow the court to vote on whether or not the matter should be heard. They need five justices to vote in favor of hearing the case in order to block the sale. The court can issue a ruling or let the deadline pass without ruling on the matter.

 

Chrysler has argued that the senior secured lenders’ complaint is petty, since the group was prepared to accept a deal if they received $2.5 billion, and they will receive $2 billion if the sale goes through.

 

The Indiana state pension funds, who have been the most vocal opponents of Chrysler’s sale to Fiat will end up with just $1.5 million less than the deal they were willing to agree to before the company went into bankruptcy. On the whole, the pension funds will only lose $5 million on the deal, since they will receive $12.2 million upon completion of the sale, when they spent $17 million on the auto maker’s debt, according to Dow Jones.

 

Indiana State Treasurer Richard Mourdock released a statement over the weekend where he defended the state’s attempts to block Chrysler’s sale.

 

“As the case moved through the entire court system, it’s becoming increasingly apparent to financial analysts and legal observers that our case and claims are about much, much more than simply Chrysler’s assets,” Mourdock said. “It’s about more than the interest of Hoosier retirees; it’s about rule of law.”

 

Attorneys representing the Indiana state pension funds have argued that if the sale goes through it undermines the established bankruptcy process, while Patricia Pascale, who is suing Chrysler because her husband died of lung cancer that could be connected to asbestos exposure, claims the sale will impede her ability to sue the company for damages. Several consumer advocacy groups have also requested more time to bring a case against Chrysler, arguing that the sale will not allow legal claims against Chrysler to proceed if the company is sold.

 

It is unlikely that Justice Ginsburg will step in to halt the sale, but if she did halt the sale and the deal went beyond Fiat’s June 15 deadline to close, Chrysler has said it will be forced to liquidate the company.

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Solicitor General Elena Kagan, the administration’s top courtroom lawyer, said in legal papers filed with the high court that consummation of the sale wouldn’t unfairly harm creditors.

How the Fuck do you fairly harm creditors?

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How the Fuck do you fairly harm creditors?

 

Its a simple calculaton of the net present value of the asset vs future cash flows less early payoffs and delinquencies/repos.

 

I'm watching this one close - My mom gets $1200mo pension from her 30yr pension -

 

Started waaaaaaay back when it was called "American Motors Corporation"............

 

thanx, D

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Its a simple calculaton of the net present value of the asset vs future cash flows less early payoffs and delinquencies/repos.

 

I'm watching this one close - My mom gets $1200mo pension from her 30yr pension -

 

Started waaaaaaay back when it was called "American Motors Corporation"............

 

thanx, D

Mine too Danny, Keep us informed, My ma loves Tejas but she may be in the mother in law unit here if this shit goes bad. Don't get me wrong I love my momma as much as the next guy, no even better but,,, I was may be thinking of escaping ca. not the other way around <_<

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Here we go... the pension funds will only lose $5 million on the deal,

Say it real fast and it doesn't sound like much.

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How the Fuck do you fairly harm creditors?

 

By letting Chrysler go bankrupt, and having the creditors pick over the bones. They might do better - they might do worse. What I interpret the spokesperson as saying (not saying I agree - I have no fucking idea) was that the sale to Fiat wouldn't be any worse than a bankruptcy. In other words, everyone is gonna share the same shit sandwich - and the bites are gonna be the same size and taste just as bad no matter which way it goes.

 

Question: Are there executive bonuses built into the Fiat deal????

 

Just wonderin' ......

 

And what about the '64 Studebaker GT Hawk - now THAT was a cool car

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