Chrysler Sale Haulted
By: Daniel Woodruff
Updated: June 8, 2009
The high court temporarily halted the government-backed sale of Chrysler to Fiat, a European automaker.
Two years ago, Indiana invested in Chrysler when it was struggling. As an investor, the state received "secured creditor" status--meaning, secured creditors are supposed to get paid first once a company goes bankrupt. But Chrysler did not pay
Opponents of the lawsuit say
Rep. Gary Peters, D-Mich., said, “Other stakeholders, including other secured lenders and Chrysler's autoworkers, accepted shared sacrifice because they recognized their interest was better served keeping Chrysler alive rather than forcing liquidation. Why the officials who decided to take their objections all the way to the Supreme Court can't recognize this is beyond me.”
