Stop the Chrysler Sale, Final Act

After the last attempt to stall the sale of Chrysler's assets over to the new company was rejected on Friday, the three Indiana state funds which opposed the sale came back on Sunday and moved their request over to the US Supreme Court, Reuters reported.

Their new attempt comes as a result of Friday's ruling, which stated that Chrysler's sale is to take place by afternoon today. The funds, which hold $42 million of Chrysler's secured loans, asked the court to look closely at the deal due to the unlawful way the unsecured creditors were awarded.

"The need for the court to review the profound issues presented by Chrysler's novel bankruptcy sale far outweighs the cost of delaying," a lawyer for the funds was qouted as saying by the aforementioned source.

"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," added the lawyer.

If a delay is not granted by the court, the sale could take place later today. Their request will be heard by Supreme Court Justice Ruth Bader Ginsburg, who can choose to act on her own or get the full court involved. To decide in favor of the delay would require the votes of five out of the nine Supreme Court members.

Chrysler and its lawyers argue the sale most go on. As we told you before, if a deal isn't reached by June 15, Fiat has the possibility to back down from the Chrysler deal. Such a scenario is though unlikely, as is the delay of the sale.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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