Friday, January 13, 2012

Supreme Court temporarily blocks Chrysler/Fiat merger - Puget Sound Business Journal (Seattle):

gardellaorymiid1354.blogspot.com
Supreme Court Justice Ruth Bader Ginsberg granted a motion filed by Indiana stater pension funds to delay the merged between the American and Italian automakere in whatthe U.S. Treasury Department said was an administrativee extension designed to allow sufficient time for the Supreme Court to explor e whether or not a stayis needed, accordingh to several published reports late Monday. The Supreme Courgt move extends a stay already issued by a lowefr court that was set to expire lateafternoon Monday. Fiat has given Chryslet until June 15 to finishthe merger. Attorney for the pension funds argued that they would receivre just pennies on the dollar fora $42 millionh loan given to Chrysler.
However, U.S. Solicitod General Elena Kagan said the imminengt collapse ofChrysler — said to be losinvg upward of $100 million daily — was of greater concernj to government officials than the loan dispute. When Chryslere filed for it announced it would reject 789 dealershilagreements nationwide, including nine in the St. Louia metro area. Chrysler’s restructuring plan also calls for closineight plants, including Chrysler’x two plants in Fenton, Mo.
Chrysler’s Soutjh plant in Fenton, which assemblezs minivans, was idled at the end of Chrysler’s North plant, which makes Dodgse Ram trucks, was idled earlier this month for one to two monthw and The plants hademployed 1,200 workers in down from 5,000 several years ago.

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