A group of Indiana pension funds may have delayed Chrysler’s sale to Fiat, but Fiat CEO Sergio Marchionne says his company will not walk away from the strategic alliance. The U.S. Supreme Court delayed Chrysler ’s sale to Fiat yesterday after an appeal was filed late Sunday.
Under the terms of the agreement, Fiat could walk away from the Chrysler deal if no sale is completed by June 15th, but Marchionne reaffirmed his commitment to the strategic alliance on Tuesday. “We would never walk away. Never,†he told Bloomberg.
The Indiana pension funds claim the Chrysler bankruptcy plan unfairly favors unsecured lenders over secured lender. It also contest the Michigan automaker was unlawfully given a loan from the Treasury’s Troubled Asset Relief Program.
Supreme Court justice Ruth Bader Ginsburg ordered the delay yesterday, announcing the sale be “stayed pending further order”. However, the delay is expected to be only a temporary setback.
