Though the Chrysler ’s fast run through bankruptcy has surprised most analysts, the company is being held back from its proposed merger with Fiat by a last minute effort by a trio of pension funds from Indiana. Though an appeals court held up Chrysler’s plans to exit bankruptcy and merge with Fiat, the group of funds filed an emergency appeal with the United States Supreme Court late on Saturday that could postpone an outcome.
The three funds, one for teachers, one for the state police and a “Major Moves” construction fund, hold about $42 million, less than 1 percent of Chrysler’s $6.9 billion debt.
The request, filed with Supreme Court Justice Ruth Bader Ginsburg, could be settled with her today before it enters the full court.
“Absent a stay, the Court will be deprived of the opportunity to decide critical, nationally significant legal issues relating to management of the economy by the United States Government,” the funds said in their stay application. The appeal was made by Indiana Treasurer Richard Murdock.
Unless the Supreme Court decides to intervene, it is widely expected that the Chrysler -Fiat deal will go through this afternoon.
