The state teachers’ retirement fund and two other state funds in Indiana have asked the U.S. Supreme Court to halt the sale of automaker Chrysler to the Italian company Fiat.
The teachers’ fund, along with a retirement fund representing police officers and the Indiana Major Moves Construction Fund, have objected to the bankruptcy plan and sale of Chrysler as lenders and unsecured creditors of the company. They say the sale is illegal under federal bankruptcy law and the U.S. Department of the Treasury improperly offered the automaker government “bailout” funds.
The funds filed an emergency application with Justice Ruth Bader Ginsburg late Saturday, asking for a stay of two lower-court rulings allowing the sale to go forward. Justice Ginsburg or the entire Supreme Court could act as soon as Monday on the request.
The independent Web site SCOTUSblog has several postings about the case, including court papers filed on Sunday by Chrysler and the United Auto Workers union (the lead unsecured creditor) defending the sale.
I’ve written here about other cases where teachers’ retirement funds have been activist shareholders or watchdogs for corporate fraud.