Supreme Court grants request to put Chrysler deal on hold
— -- The Supreme Court on Monday at least slowed down the sale of Chrysler to Fiat when Justice Ruth Bader Ginsburg issued a one-line order that temporarily blocks the move and could put Chrysler's future in question.
The order came a week after President Obama declared victory with Chrysler's bankruptcy reorganization, calling out critics who said it couldn't be done in the 30- to 60-day window the administration aimed for. But he made the statement before final court clearance of the plan to sell Chrysler's best assets to Fiat, allowing it to emerge from bankruptcy and leaving its troubled assets behind in bankruptcy court for disposal. It's been 39 days since Chrysler's bankruptcy filing.
Chrysler has argued it needs the deal done quickly, because Italy's Fiat can back out if it's not done by June 15. And without Fiat as a partner, Chrysler has said in court documents, it faces liquidation.
Following the Supreme Court order, Fiat CEO Sergio Marchionne told Bloomberg News that he would "never" back away from the deal.
Ginsburg offered no explanation when she issued an order delaying the sale "pending further order" from the court. She was responding to an appeal from Indiana state pension funds holding Chrysler bonds that the sale structure violates the rights of secured creditors under bankruptcy law.
Ginsburg, and possibly the full court, may be weighing several arguments that have been filed at the court in recent days as groups including the Indiana funds have tried to block the sale.
Chrysler and the White House declined to comment Monday. An administration official, who was not authorized to speak publicly on the matter and asked not be named, said the court's decision is likely "an administrative extension designed to allow sufficient time for the court to make a determination on the merits of the request for a stay."
Rep. Joe Donnelly, D-Ind., said he remains "very hopeful" the sale will be approved. Chrysler has three plants employing about 5,000 workers in his district. "There's been no indication that the pension funds have suffered any damage," he said.
