After a U.S. appeals court in New York ruled Friday that Chrysler could proceed with the sale of its assets to Fiat Monday afternoon, the Indiana pension funds that brought the case to the appeals court have now asked the U.S. Supreme Court to delay the sale while the group attempts to block the sale.
The filing could be the last chance for the pension funds to stop the sale of Chrysler's assets. The funds, which together hold just $42 million of Chrysler's $6.9 billion in secured loans, have contested the way the sale rewards unsecured creditors - primarily, the United Auto Workers union - and burns secured lenders, who are supposed to be repaid first under bankruptcy law.
"The need for the court to review the profound issues presented by Chrysler's novel bankruptcy sale far outweighs the cost of delaying," lawyers for the pension funds said.
"The public is watching and needs to see that, particularly, when the system is under stress, the rule of law will be honored and an independent judiciary will properly scrutinize the actions of the massively powerful executive branch," they said.
The pensions filed the stay with Supreme Court Justice Ruth Bader Ginsburg, who apparently has jurisdiction for emergency matters from the New York-based appeals court. Ginsberg can act on her own or refer the case of the full court. If she chooses to take the case to the full court, a stay would require the votes of at least five of the nine justices. A decision from Ginsberg is expected sometime this afternoon.
Source: Automotive News