Appeals court to hear argument vs. Chrysler sale
Lawyer Blogs
The decision on whether Chrysler can sell the bulk of its assets to a group led by Italy's Fiat as part of its plan to emerge from bankruptcy protection heads to a federal appeals court Friday.
The 2nd U.S. Circuit Court of Appeals is to hear arguments Friday afternoon from attorneys representing Chrysler LLC, Fiat Group SpA and a trio of Indiana state pension and construction funds, the latter of which say the deal unfairly favors the interests of the company's unsecured stakeholders ahead of those of secured debtholders such as themselves.
Late Tuesday, the appeals court halted the sale pending the Indiana state funds' appeal. Chrysler had hoped to close the sale by the end of this week.
Auburn Hills, Mich.-based Chrysler has maintained that the sale is its only hope of avoiding selling itself off piece by piece. If the sale doesn't close by June 15, Fiat has the option of pulling out of the deal. In addition, production at Chrysler's manufacturing plants remains halted pending the closing of the sale.
The funds, which include the Indiana State Police Pension Fund, the Indiana Teacher's Retirement Fund, and the state's Major Moves Construction Fund, also are challenging the constitutionality of the Treasury Department's use of Troubled Asset Relief Program, or TARP, funds to supply Chrysler's bankruptcy protection financing. They say the Treasury did so without congressional authority.
Related listings
-
Federal judge tosses warrantless wiretap cases
Lawyer Blogs 06/04/2009A federal judge on Wednesday tossed out more than three dozen lawsuits filed against the nation's telecommunications companies for allegedly taking part in the government's e-mail and telephone eavesdropping program that was done without court approv...
-
Appeals court to hear appeal of Chrysler sale
Lawyer Blogs 06/03/2009A federal appeals court late Tuesday halted Chrysler's sale of the bulk of its assets to Italy's Fiat pending an appeal by a trio of Indiana state pension and construction funds. The U.S. Court of Appeals for the Second Circuit will hear arguments in...
-
Reid praises Sotomayor as 'the whole package'
Lawyer Blogs 06/02/2009The Senate's top Democrat praised federal judge Sonia Sotomayor Tuesday as an extraordinarily well-qualified Supreme Court nominee whose background as an "underdog" appeals to Americans. "We have the whole package here," said Sen. Harry Reid, seated ...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.