Supreme Court delays Chrysler sale

Supreme Court justice Ruth Bader Ginsburg decided to issue a suspension on the sale of the automaker's assets to Fiat.

The Indiana Treasurer - which is acting on behalf of the Indiana State Police Pension Fund, the Indiana Teachers Retirement Fund and the Major Moves Construction Fund - confirmed to Global Pensions it intends to proceed with the remaining judicial options.

Spokesperson Chris Conner said: "We are filing the papers needed to have the Supreme Court hear the case. Four judges out of nine have to agree for this happen."

Conner said the Court did not say until when the stay the suspension would be in place, nor did it explain the reasons why it decided to issue one.

Meanwhile, solicitor general Elena Kagan, which represents the Obama administration, submitted a memo to the Court to oppose the application for a stay filed by the Indiana Treasurer.

In the memo, Kagan argued: "Before filing for bankruptcy, Chrysler exhaustively pursued all other options….Only the US department of the Treasury, Export development Canada and Fiat proved willing to ally themselves with Chrysler."

The case has been heard so far by a US bankruptcy court, which authorized the sale and by a district court who issued a stay on the transaction, following allegations by the Treasurer the sale discriminated the Indiana funds as creditors. (Global Pensions; June 8, 2009)