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Appeal filed with Supreme Court

by Bill Cawthon on

Attorneys representing three Indiana pension funds filed a 39-page appeal with the U.S. Supreme Court yesterday. They are hoping the court will hear their appeal and block the sale of Chrysler’s assets to NewCarCo Acquisitions LLC.

The appeal covers the same arguments that were presented in the group’s unsuccessful appeal to the U.S. Court of Appeals for the Second District, which upheld the rulings made by Judge Arthur Gonzalez in Chrysler’s bankruptcy case. The group says Judge Gonzalez placed the unsecured creditors, like the UAW’s pension fund, ahead of the interests of secured creditors. The funds also believe the Obama Administration overstepped its bounds by using money from the Trouble Assets Relief Program (TARP) to help Chrysler and General Motors without the approval of Congress.

The appeal was referred to Justice Ruth Bader Ginsburg, who can rule on it herself or refer it to the entire court. Five justices have to agree to hear the case.

The appeal has a deadline of 4:00 PM Eastern Time today as that is as long as the appeals court would delay the sale. If the appeal is not accepted and a stay order issued, the asset sale could take place anytime after 4:00 PM.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.


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