Supreme Court Stays Chrysler Deal

| About: Fiat Chrysler (FCAU)

Developing Story. Liquidation for Chrysler after Fiat (FIATY.PK) bounces asap?

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 it further, or allow it to go forward.

It would have taken the votes of five members of the Court to grant a full postponement.
Ginsburg’s brief, unexplained order said only that the bankruptcy court’s decisions approving the sale were “stayed pending further order” by her or the Court.

The Justice acted just minutes before a 4 p.m. deadline that the Second Circuit Court had set last Friday. At that hour, a delay ordered by the Circuit Court expired. If Ginsburg had not acted, the sale would have been cleared under the terms of the lower court’s order.

The action had almost no legal significance, however. The deal remains in legal limbo until Ginsburg, as the Circuit Justice, or the full Court takes some definitive action.

As Johny Drama would say "Victory" even if it is just temporary (Five Towns sucked).

Sorry GM. Interesting if those GM loans trading at par drop to 0 tomorrow.