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Monday, June 08, 2009

Courts - Chrysler lender responses now availble

SCOTUSBlog now has posted links to the responses of the defenders of the Chrysler rescue plan to the pleas to halt the sale while the Supreme Court reviews its legality. In addition, last evening Lyle Dennison listed the "Key points of Chrysler plan defense." A sample:

* The harsh consequences will also fall on the Indiana funds leading the challenge. If the plan goes through, however, they will get $12.2 million on a “distressed investment” that they bought for $17 million.

* The Indiana creditors have not offered to put up a bond as a condition for getting the plan delayed by the Supreme Court. Such a bond would have to be at least $1.2 billion to protect Chrysler, and that figure does not include damages from lost jobs and losses to suppliers and other industries affected.

Here is a long list of earlier ILB entries on the Chrysler bailout and the Indiana challenge.

Greg Gardner reports in the Detroit Free Press:

Chrysler, Fiat and the U.S. Treasury can close the sale creating a new Chrysler at 4:01 p.m. today, unless Supreme Court Justice Ruth Bader Ginsburg decides the court should hear an appeal from three Indiana pension funds that are objecting to the deal. * * *

If Ginsberg decides the case should be heard, the Chrysler-Fiat deal would be prevented from closing until a hearing and consideration by the nation's highest court. That could result in a serious delay of the deal, which Fiat would like to close by June 15.

"There's only two times in my life when I have seen the Supreme Court act quickly," said Jennifer Shaw, a retired bankruptcy attorney who has closely followed the Chrysler case. One was the Bush v. Gore recount, she said, and the other was whether President Richard Nixon had to comply with U.S. District Judge John J. Sirica's order that Nixon turn over his tapes.

The sale could close immediately, though, if Ginsburg decides the case will not be heard.

Early Sunday morning, lawyers for a group of citizens with product liability claims against Chrysler filed a brief with Ginsburg that supports the Indiana pensioners' case. Under terms of the sale, the new company, led by Fiat, would face no risk from product liability lawsuits filed against Chrysler related to vehicles produced or sold until the day the sale closes.

Posted by Marcia Oddi on June 8, 2009 06:29 AM
Posted to Courts in general | Indiana Government