Chrysler’s Bankruptcy Fire Sale Is Done, But Indiana May Still Have Something to Say About It
Monday, June 29th, 2009Well, Chrysler’s bankruptcy fire sale is done. It was finalized on June 10th. Now, three main players hold the bulk of Chrysler’s “good†assets: the Italian car-maker Fiat, the United Auto Workers’ retiree healthcare trust, and the federal government. And, the majority of Chrysler’s secured creditors got 29 cents on the dollar for their debts. You’ll recall that this deal was not without controversy.
The bankruptcy judge who oversaw the case approved the deal, finding it was necessary for Chrysler to avoid liquidation. But the heads of two Indiana pension funds – the Indiana State Police Pension Fund and the Indiana Teachers’ Retirement Fund – and Indiana’s Major Moves Construction Fund appealed the judge’s order to the Second Circuit U.S.…