In a move that surprised me, Supreme Court Justice Ruth Bader Ginsburg put the brakes on the sale of Chrysler to Italy's Fiat. I bet Barry's REALLY hacked off! This was going to be his shining moment!
Three Indiana state pension and construction funds, which have a stake in Chrysler's debt, are challenging the restructuring plan of Chrysler saying that unsecured debtholders are unfairly being favored over secured debtholders. Secured debtholders are being paid 29 cents on the dollar for a total of $2 billion. The combined secured debt they've chipped in is about $6.9 billion.
The group is also challenging the restructuring plan on a constitutional argument. They claim that the use of TARP funds by the Treasury Department to supply Chrysler's bankruptcy protection financing never received Congressional approval. As if something like the Constitution has ever stopped this administration.
Chrysler has said that the sale must close by June 15, or Fiat has the option of walking away from it, leaving Chrysler the only option of liquidation.
If Chrysler were to liquidate, do you think the taxpayers are going to see any return on their money? Don't hold your breath, kids.