Well, well, well — Look who woke up and issued a ruling from the Supreme Court. Ruth Bader Ginsburg may yet turn out to be Bill Clinton’s final revenge:
WASHINGTON (AP) – Supreme Court Justice Ruth Bader Ginsburg on Monday delayed Chrysler’s sale of most of its assets to a group led by Italy’s Fiat, but didn’t say how long the deal will remain on hold. Ginsburg said in an order that the sale is “stayed pending further order,” indicating that the delay may only be temporary.
Chrysler LLC has said the sale must close by June 15, or Fiat Group SpA has the option to walk away, leaving the Auburn Hills, Mich., automaker with little option but to liquidate.
oh, Waaah, Waaah, Waaaah. Sound like the same line of crap they tried to sell us on the Stimulus Bill. “Don’t read it — just hurry up and sign the thing!!!
A federal appeals court in New York approved the sale Friday but gave opponents until 4 p.m. EDT Monday to try to get the Supreme Court to intervene. Ginsburg issued her order right before the deadline. Ginsburg could decide on her own whether to end the delay, or she could ask the full court to decide. It is unclear when she or the court will act.
Chrysler said it had no comment until it receives further information from the court. Chrysler claims the agreement with Fiat is the best deal it can get for its assets and is critical to the company’s plan to emerge from Chapter 11 bankruptcy protection.
But a trio of Indiana state pension and construction funds, which hold a small part of Chrysler’s debt, have been fighting the sale, claiming that it unfairly favors Chrysler’s unsecured stakeholders ahead of secured debtholders like themselves.
As part of Chrysler’s restructuring plan, the automaker’s secured debtholders will receive $2 billion, or about 29 cents on the dollar, for their combined $6.9 billion in debt. The Indiana funds bought their $42.5 million in debt in July 2008 for 43 cents on the dollar.
The funds also are challenging the constitutionality of the Treasury Department’s use of money from the Troubled Asset Relief Program to supply Chrysler’s bankruptcy protection financing. They say the government did so without congressional authority.
Daniels has been very vocal in his denunciations of the Courts bypassing the secured debtholders (i.e., the Indiana State Pensions Funds) in favor of the unions and others. The Pension funds stand to lose as much as half of their investment if the courts approve the original Obama Plan.
Judge Andrew Napolitano on the Glenn Beck Program just predicted that not only would the Supreme Court rule aginst the Bankruptcy courts, but that the Constitution would be upheld — which could be the beginning of the end of the Obama administration as we know it.