- The Washington Times - Monday, June 8, 2009

UPDATED:

Supreme Court Justice Ruth Bader Ginsburg on Monday afternoon temporarily delayed the sale of Chrysler LLC to a group led by Italian automaker Fiat.

The case was brought by three Indiana state pension and construction funds that say unsecured stakeholders are getting a better deal than them and other secured debt-holders.

Chrysler filed for bankruptcy April 30. A New York bankruptcy court approved the Fiat sale May 31. The case heard by Judge Ginsburg went last week to a New York appeals court, which gave the group until Monday afternoon to try to get the Supreme Court to intervene.

Judge Ginsburg, who handles such New York-related cases, said the deal is “stayed pending further order,” which suggests the delay might be only temporary. She can act on her own or include the entire court.

Consumer groups have joined in the appeal because they want the Fiat group to have more liability for vehicles made before the deal.

Fiat can back out of the deal if not completed by June 15.

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