U.S. Top Court Judge Delays Chrysler Sale

June 8th, 2009 (10) Posted By Erik Wong.

firstchryslercar1924

First Chrysler car 1924

Reuters

WASHINGTON/DETROIT (Reuters) – A U.S. Supreme Court justice granted on Monday a request to put on hold the sale of bankrupt automaker Chrysler LLC to a group led by Italian carmaker Fiat SpA.

U.S. Supreme Court Justice Ruth Bader Ginsburg, in a one-sentence order, said the orders of the bankruptcy judge allowing the sale “are stayed pending further order of the undersigned or of the court.”

Ginsburg acted as a 4 p.m. EDT deadline from a U.S. appeals court in New York was due to expire. The appeals court order would have allowed Chrysler to proceed with its sale to Fiat, a union-aligned trust and the U.S. and Canadian governments.

It was not clear if Ginsburg’s order was designed to give the high court more time to consider the dispute.

Her order made no mention of when briefs in the appeal would have to be filed or whether the Supreme Court would hear the underlying legal challenge to the sale.

Indiana pension funds and consumer groups had asked the Supreme Court on Sunday to stop the sale of Chrysler while they challenged the deal.

The Obama administration, earlier on Monday, urged the Supreme Court to allow the sale, saying that blocking the deal would have “grave consequences.”

Solicitor General Elena Kagan of the U.S. Justice Department, the administration’s lawyer before the high court, said in a written argument that blocking the sale could force Chrysler’s liquidation.

Sheryl Toby, a bankruptcy attorney in Michigan, said, “I don’t think this gives you an indication that they’re ruling on the merits, but she (Ginsburg) is maintaining the status quo at least to determine whether to consider the appeal.”

The Chrysler case could set a precedent for General Motors Corp, which is using a similar quick-sale strategy in its bankruptcy in New York.

The Indiana pension funds argued that the sale of Chrysler unlawfully rewards unsecured creditors ahead of secured lenders and amounts to an illegal reorganization plan, and that the U.S. Treasury Department overstepped its legal authority by using bailout funds for Chrysler when Congress intended the money for banks.

(Reporting by Jim Vicini, Soyoung Kim and Poornima Gupta; Editing by John Wallace and Tim Dobbyn)

Jihadi Killer Radio Hour
Follow Pat on Twitter
  • Mr. Standfast

    We are about to witness the brilliance of our founding fathers shine through or the complete collapse of our financial legal system. This is the tipping point. If SCOTUS follows the law, then the illegal redistribution of Chrysler assets to the unions will be reversed. If not, the progressives will have won a major change in the law that will allow the federal government to rewrite every legal business contract.

    Interesting times…

  • Specter

    Your right, this may be the tipping point.

    We’re going to find out if abrigating contracts is constitutional.

    The one I have says it isn’t.

  • bill-tb

    Where there is hope, there is change.

  • Randy

    Why is it either Obamas way or there will be “grave consequenses”? That dog won’t fly for very much longer.

    And Mr. Standfast…wishful thinking. I’d bed a ton of money that says Mr. O gets his way.

  • http://patdollard.com Average Joe

    FUCK’D-US(sorry, SCOTUS) didn’t even have the balls to rule against ACORN “before” the election.

    Since Ginsburg is leaving, this sounds like an issue that I heard on a TV ad when visiting family….
    A city counselor out here is quoted as saying, “when this goes broke, I’ll be off the counsel and my replacement can clean up the mess.”

    A full-Obama SCOTUS will side with him…She’s gving him time and helping him plan his next move.

    Founding Fathers would have started REVOLUTION back during Clinton.

  • Cpl. Munk

    This is the best shot of the chrysler dealership owners also finally getting a fair shake as well. We will now see if the SCOTUS will follow the constituion and the law or throw it out the window and let Obama have his way. This will be huge.

  • Hawkerdriver(Pisson the Koran)

    I have NO FAITH in SCOTUS any more.The birth certificate issue remains a scandal smeared all over them.This case will be no different. They refuse to do the right thing,probably never will.They are dispicable.

    What the FUCK is in that kool-aid ? :shock:

  • Phil Byler

    If basic points of constitutional law finally get applied to what Obama has been doing, then a number of Obama Adminsitration measures are invalidated.

  • Chuck O

    The problem is the SCOTUS pretty much does what it wants. They are not elected and serve life terms. As few as 5 people in robes basically decide for 300 million people without fear of facing any consequences. They look to laws in other countries in order to give justification for their rulings. we’re still on our first constitution. How many other nations can make that claim. Our founding father knew what they were doing but todays leaders have their heads in a shitbucket.

  • Mr. Standfast

    Ginsburg hates Obama, his politics towards Israel, and his money politics. She is going to hold on to life and that judgeship for as long as necessary to avoid letting this president putting in a marxist in her place. Just watch. SCOTUS will act against these policies. Obama has crossed the line with her.