Late Tuesday afternoon, the Supreme Court, in an unsigned decision, lifted the temporary stay imposed just one day before in the Chrysler bankruptcy filing thus clearing the way for the sale to FIAT.
Attorneys for the Indiana State Teachers Retirement Fund, Indiana State Police Pension Trust and other parties had previously filed objections to the proposed Chrysler sell of a significant portion of its operating assets to a new company to be run by FIAT. The pension funds, representing approximately 100,000 civil servants, including fireman, policemen and teachers, had argued, to no avail, in the bankruptcy court, that the proposed sale effectively gutted the interest of the plans, as secured lenders not receiving TARP funds, by resulting in the payment to them of 29 cents on the dollar while resulting in significantly higher percentage to the UAW. These non-TARP secured lenders, who had previously opposed a proposed settlement outside of bankruptcy and which were sometimes referred to in the press as ”speculators,” had argued that the proposed sale effectively rendered their secured status under the bankruptcy law as meaningless and would result in a loss to the plans of almost $5 billion dollars. On Monday, the plans received a temporary stay from the proposed sale pursuant to an order issued on Monday by Justice Ruth Bader Ginsburg. Late Tuesday afternoon, the stay was lifted.
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