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Mon June 8, 2009
High court asked to block Chrysler sale to Fiat
WASHINGTON (AP) – WASHINGTON (AP) - Three Indiana state pension and construction funds are asking the Supreme Court to block Chrysler's sale to Fiat so they can pursue an appeal in hopes of getting a better deal.
They claim the current agreement unfairly favors the interests of Chrysler's unsecured stakeholders ahead of those of secured debtholders.
Also filing emergency papers at the high court are lawyers representing consumer groups and individuals with product-related lawsuits. They're contesting a condition of the sale agreement that would release the new company from pending and future product liability claims related to vehicles sold before the new company's
An appeals court in New York approved the sale Friday, but gave objectors until tomorrow afternoon to try to get the Supreme Court to intervene. Chrysler wants to sell the bulk of its assets to Fiat as part of its plan to emerge from bankruptcy protection.