Judge Rejects Indiana Chrysler Case Request

By Scott Sarvay

June 18, 2010 Updated May 26, 2009 at 5:28 PM EDT

INDIANAPOLIS (Indiana's NewsCenter) - It's a loss for Indiana State Treasurer Richard Mourdock and he says it'll translate to a loss for retired Indiana teachers and state police officers as well.

Mourdock says Chrysler isn't paying out a fair amount to the pension funds of Indiana’s teachers and state police, which were heavily invested as secured creditors in the automaker and that unsecured creditors are making more on the deal.

He filed suit against Chrysler’s plan and was hoping to delay a scheduled hearing tomorrow on the sale of most of the auto maker's assets to Italy’s Fiat group.

A US federal judge rejected that request this afternoon, however.

Chrysler plans to pay Indiana’s funds 29 cents back per dollar of investment, while giving unsecured creditors like the United Auto Workers union 50 cents on the dollar.

The automaker's attorneys argued that delaying the bankruptcy could cause the deal to fall apart.


(© Copyright 2009 Indiana's NewsCenter. All Rights Reserved.)

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