The Chrysler-Fiat sale could become official as early as tomorrow, but some Chrysler creditors are still pushing hard to block it. Three Indiana state funds late Saturday asked the United States Supreme Court to delay a deal to sell most of Chrysler’s assets to Fiat, hoping to again challenge the transaction after two lower courts approved it.
Emergency stays are rarely granted by the Supreme Court. Were it to be approved, however, the Chrysler deal with Fiat could be delayed for weeks or months while the issue is pending at the high court. In documents filed to Justice Ruth Bader Ginsburg, lawyers for the funds asked to extend a stay on the sale, which is set to expire Monday at 4 p.m. If the high court declines to issue its own stay of the deal, Chrysler and Fiat are free to close the transaction immediately. The three Indiana funds, which represent teachers and police officers, have sought greater compensation for their portion of Chrysler’s $6.9 billion in secured debt. They have also argued that the Obama administration illegally used federal bailout money earmarked for financial institutions to help Chrysler.