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Indiana Treasurer Wins Right to Appeal Chrysler Bankruptcy Terms

By Jeff Neumeyer
June 18, 2010 Updated Jun 3, 2009 at 4:58 PM EST FORT WAYNE, IN (Indiana's NewsCenter) --- Indiana's State Treasurer has at least temporarily blocked the sale of most of Chrysler Corporation's assets to Fiat. A late decision allows for a court challenge to see if two Hoosier pension funds and a construction fund are getting a raw deal in the automaker's bankruptcy. State Treasurer Richard Mourdock says he doesn't like holding up the sale of Chrysler to Fiat, but he insists he won't back down, and now he'll get a hearing before a federal appeals court. Mourdock says the Chrysler bankruptcy gives majority ownership of the company to the government's preferred unsecured creditors, while secured creditors, including the Indiana Teacher's Retirement Fund, the State Police pension fund and the Major Moves construction fund stand to receive only 29 cents on the dollar. Mourdock argued that goes against decades of U.S. bankruptcy law, and he has now convinced a New York federal appeals court to listen to arguments. He blames the Obama administration for forcing his hand. Richard Mourdock/(R) Indiana Treasurer: " My filings, our complaints, are not so much against Chrysler as they are the acts of the U-S Government, because the U-S Government has been running Chrysler. They cannot, even in a time of what they deem national emergency due to the economy, they cannot break the law." Oral arguments will be presented Friday afternoon. That's when the bankruptcy was supposed to be finalized. If the court case holds things up too long, it could threaten the sale to Fiat entirely, but again, Mourdock says he won't back down.
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