Supreme Court Decision Puts Chrysler At Risk

Judge Ruth Bader Ginsburg issued an order on Monday which could possibly put Chrysler at risk of going out of business. The Justice’s action amounts to a holding action of Chrysler’s impeding bankruptcy. Three Indiana state funds and various consumer groups have objected to Chrysler’s bankruptcy, and if the Supreme Court decides to hear the appeal, it can last weeks or months.

Fiat, which is the only company that has shown an interest in acquiring most of Chrysler’s assets, can walk away from the deal if it is not concluded by June 15. Commenting legal scholars do see the importance of the Court looking at the issues involved, but seem to feel that, in the end the sale to Fiat will be approved.

President Obama had promised a “quick” and “efficient” bankruptcy and this order by Judge Ginsburg has put a spoke in the wheels. For an in depth story on this surprising turn of events see Tuesday’s New York Times.