Bankruptcy Law
Chrysler Sale to Fiat in 'Legal Limbo' After Ginsburg Order
The U.S. Supreme Court this afternoon put a temporary hold on the government-backed plan to sell most of Chrysler’s assets to Fiat, taking the side of a group of Indiana pension funds who say the sale would unconstitutionally favor junior creditors above senior lenders.
SCOTUSblog says Justice Ruth Bader Ginsburg’s order (PDF posted by SCOTUSblog), which stayed the order of the U.S. Bankruptcy Court approving the sale, gives the full court more time to decide whether to allow the sale or postpone it further.
“The action had almost no legal significance, however,” reporter Lyle Denniston wrote at SCOTUSblog. “The deal remains in legal limbo until Ginsburg, as the circuit justice, or the full court takes some definitive action.”
