Chrysler deal headed to the Court
on Jun 5, 2009 at 5:43 pm
Lawyers for holders of Chrysler Corp. debt planned on Friday to go swiftly to the Supreme Court to try to block the sale of the automaker’s key assets to the Italian auto company, Fiat. The plea to put the sale on hold is expected in the wake of a ruling by the Second Circuit Court earlier Friday, upholding the deal that is designed to save the seriously troubled American auto manufactuer from collapse. (A New York Times account of Friday’s appeals court ruling is here.) The case in the Circuit Court is In re Chrysler (Circuit docket 09-2311). The Obama Administration’s brief, urging the courts to allow the sale to go forward, can be downloaded here.
The Circuit Court delayed its ruling until 4 p.m. Monday, to allow the debtholders to seek some help from the Supreme Court; their lawyers told the Circuit Court they would do so. The formal order has not yet been issued, but initial reports were that the stay would lift earlier than 4 p.m. if the Supreme Court does not step in or refuses a stay.
Initially, a stay request to the Supreme Court would go to Justice Ruth Bader Ginsburg, Circuit Justice for the Second Circuit with the authority to act on emergency matters. She could deny a stay on her own, on share the action with her colleagues. If there is to be a stay, however, it would take the votes of five Justices.
