A trip to the Supreme Court for Chrysler?
A group of Indiana pension funds, which has been opposing the sale of Chrysler's assets to a group including Fiat, has asked that the case be heard before The Supreme Court. The sale was upheld by the 2nd U.S. Circuit Court of Appeals in New York.
The appeal means nothing to the process of the sale if the high court rejects giving it a hearing. Should the Supreme Court decide to review the case, it would have the potential effect of blowing the whole deal apart. Both sides in the legal action may have to take weeks to prepare for an appearance and there is some chance that the court would not hear the case immediately.
The court may decide to hear the case as a matter of law, if it believes that the Indiana pension funds may have had their rights violated. But, it is also possible that even if the court sees a case for the Indiana funds it will take a more pragmatic course and simply reject the appear. That might skirt the issue of the legality of the filing in favor of not destroying Chrysler's only reasonable chance to survive.
Douglas A. McIntyre is an editor at 24/7 Wall St.