FOXNews.com
- June 08, 2009
Supreme Court Halts Chrysler Sale to Fiat
The Supreme Court on Monday granted an emergency appeal asking it to halt the impending government-backed sale of Chrysler to Italian automaker Fiat.
The Supreme Court on Monday granted an emergency appeal asking it to halt the impending government-backed sale of Chrysler to Italian automaker Fiat.
The order stops for now Chrysler's sale, which the company claims could scuttle the deal.
Justice Ruth Bader Ginsburg signed the order, but it may be only temporary.
A federal appeals court in New York had earlier approved the sale, but gave opponents until 4 p.m. ET Monday to try to get the Supreme Court to intervene. Ginsburg issued her order just before 4 p.m.
Indiana Treasurer Richard Mourdock said the ruling was a small victory for Indiana pensioners, who brought the request for an injunction for fear of losing their stake.
"The ... thing I hear is, 'Oh, if this doesn't happen, the sale won't take place.' Let's not forget Fiat is not paying one penny for 20 percent of this deal. If I am going to receive $400 million worth of assets on day one and I don't have to make an investment, I don't care so much if it happen Monday, Tuesday or next week, I am going to be there in the end."
The court needs more time to figure out what it wants to do. In order for the stay to have a more lasting effect, five justices need to sign on it. That has not happened, or at least not yet. The court may yet deny the emergency request or grant it and await arguments about why it should actually hear an appeal.
Ginsburg could decide on her own whether to extend the delay or ask the full court to decide. It is unclear when she or the court will act.
Rep. Gary Peters, D-Mich., whose congressional district is home to Chrysler world headquarters, said the state of Indiana pension funds' attempt to stop the sale is an effort to prevent a swift emergence from bankruptcy in the name of a small sum.
Indiana's pension funds would lose $4.8 million if Chrysler is allowed to emerge from bankruptcy, Peters said, while the state will lose more than $20.7 million in tax revenue if Chrysler is liquidated, as well as incur tens of millions in lost revenue, expenses and new unemployment claims.
"Other stakeholders, including other secured lenders and Chrysler's autoworkers, accepted shared sacrifice because they recognized their interest was better served keeping Chrysler alive rather than forcing liquidation. Why the officials who decided to take their objections all the way to the Supreme Court can't recognize this is beyond me," Peters said.
Greg Signore, a Dodge dealer whose company is closing down as a result of the Chrysler sell-off, told FOX News he'd be in a better position starting from scratch than allowing the sale to go through.
"We're small dealers, we're getting crushed in all this. Why should we have to pay?" Signore asked. "If they liquidate the company, that's fine with me. But then everybody is on the same playing field. Then the big dealers are crushed too. Why should the small dealer have to get hit on this? Why should it cost me a half million dollars? I'd be in better shape."
FOX News' Lee Ross and The Associated Press contributed to this report.
Latest Politics Videos
-
-
From Pro-Choice to Pro-Life
-
Nov 09, 2009
Fmr. Planned Parenthood director
-
-
-
Shocking Warning
-
Nov 09, 2009
Hannan on global climate change agenda
-
-
-
Hannity's America: 11/6
-
Nov 09, 2009
Failure to communicate?
-
-
-
Misplaced Priorities?
-
Nov 09, 2009
Should Dems be focusing more on economy?
-
-
-
2nd Stimulus Needed?
-
Nov 09, 2009
High unemployment puts pressure on Obama
-
-
-
'The Right Decision'
-
Nov 09, 2009
Republican votes for health care bill
-
Real Clear Politics Poll
| Job Approval | Approve | Disapprove | Spread |
| Obama | 51.7% | 43.7% | +8.0% |
| Congress | 25.5% | 66.7% | -41.2% |
| Direction of Country | Right Direction | Wrong Track | Spread |
| RCP Average | 38.2% | 55.8% | -17.6% |
Most Active In Politics
Most Read
Most Commented
-
House Passes Health Care Bill
November 08, 2009 1,126 comments
-
Obama: 'Dont' Jump to Conclusions' on Fort Hood Shooting
November 06, 2009 609 comments
-
Republicans Rally Resistance to Health Care Bill, as House Vote Nears
November 05, 2009 656 comments
-
Democrats Face Electoral Backlash After Health Care Vote, Top Republican Warns
November 09, 2009 557 comments
-
Obama Draws Criticism for Sitting Out Berlin Wall Anniversary
November 09, 2009 537 comments
-
Aid for Elderly May Raise Costs for Young
November 10, 2009
-
U.S. Lowers Goals for Asia Trip
November 10, 2009
-
Bills Would Set Limits on Big Firms
November 10, 2009
-
Fishing License Has Colonial Catch
November 10, 2009
-
Health Bill Faces Senate Heat
November 09, 2009
-
At last we’re getting our heads out of the sand
November 09, 2009
-
The laws that stain Britain’s good name
November 09, 2009
-
Gordon Brown screwed up by not screwing it up
November 09, 2009
-
Would you live on the wrong side of the Berlin Wall?
November 09, 2009
-
Graveyard of empires could claim more careers
November 09, 2009
recommend


Subscribe to Comments






