Chapter 11

Lenders Seek to Block Chrysler Sale

No need to put an Italian flag on the antenna of your Chrysler just yet: “Chrysler LLC creditors asked a U.S. Supreme Court justice to block the carmaker from selling its assets as early as tomorrow to a group led by Italy’s Fiat SpA,” reports Bloomberg. Indiana pension funds that lent Chrysler money have asked the Supreme Court to review the sale, and asked Justice Ruth Bader Ginsberg to block the sale until the Court has decided. “The Indiana funds, holding $42.5 million of $6.9 billion in Chrysler secured loans, contend the Fiat deal is a misuse of the Troubled Asset Relief Program, which they say was intended for financial institutions, not carmakers.”