Just a Speed Bump…

Just heard on the radio that the US Supreme Court has delayed the sale of Chrysler to Fiat.  The announcement from SCOTUSblog states:

Supreme Court Justice Ruth Bader Ginsburg put a temporary hold Monday on the deal to sell Chrysler to save it from collapse.  Her order, however, simply gives her or the full Court more time to ponder whether to postpone the sale further, or allow it to go forward.  The order can be found here.

It will be interesting how this shakes out.  Fiat could pull out of the deal if it is delayed past June 15.

I still think that the sale will go through, although there may be some “modifications.”

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About Tom Roland

EE for 25 Years, Two Patents - now a certified PMP. Married twice, burned once. One son with Asperger's Syndrome. Two cats. Conservative leaning to the Right. NRA Life Member.
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3 Responses to Just a Speed Bump…

  1. I’ve been reading about some of the objections to the Chrysler-Fiat merger. Two of those objections are that Chrysler shareholders are getting the shaft and that lawsuits in progress against Chrysler would be nulled in the buyout.

    I, too, suspect that the sale will go through — with modifications. Too many rumbles about the present deal.

  2. Kris says:

    No doubt in my mind it will go through. I’m just glad I’m not a shareholder.

  3. Tom says:

    AOW – Proper and legal recourse of existing and future lawsuits concerning product is only one of the problems with this deal. The main thrust of the lawsuit is the preference of non-secured bondholders over secured bondholders, which is in violation of current bankruptcy law.

    Kris – But you are a shareholder – now!! If you pay taxes, you are a shareholder via the 8% the Government holds and the seat on the new board.

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