[Guest post by DRJ]
The Indiana pension funds have appealed to the Supreme Court the Second Circuit’s denial of their objection to Fiat’s purchase of Chrysler. The sale will go forward unless four of the nine Supreme Court justices vote to hear the appeal by Monday at 4 PM.
More information and briefs are available at lawjobs.com. The pensions object to the treatment of their claims compared to junior creditors and the use of TARP funds:
“The funds hold roughly $42 million of Chrysler’s $6.9 billion in secured debt. They complain that the plan would strip them of the priority to which they are entitled under the bankruptcy law over junior creditors.
Under the plan first approved by the bankruptcy court and now by the circuit, the funds stand to receive 29 cents on the dollar for investments they purchased in July 2008 for 43 cents.
The funds also argued that the use of $2 billion in loans from the Troubled Asset Relief Program was illegal because the statute creating the program was intended to aid financial institutions, not automakers.”
Meanwhile, bankruptcy hearings on the dealer terminations are also scheduled to resume, so the next two weeks should bring more clarity to the fate of Chrysler and its dealers.