Tuesday, June 9, 2009
New era of capitalism deepens -- Chrysler sale OK'd by high court
The new post-financial system collapse era of American capitalism took off in earnest today when the U.S. Supreme Court lifted its stay and cleared the way for Chrysler Corp. to be acquired by its union and Fiat, the Italian automaker. According to Cable News Network (CNN), the high court voted to turn down an appeal by Indiana state pension funds that had challenged the complex deal, removing the last impediment to the White House-backed sale. The court had delayed the sale Monday, apparently to review last-minute filings from the parties. The ruling means Chrysler, for decades the third-largest U.S. automaker, will emerge from bankruptcy owned primarily (55 percent) by the United Auto Workers trust with minority ownership (20 percent) by Fiat. The governments of the United States and Canada also will own smaller stakes, CNN said. "We are delighted that the Chrysler-Fiat alliance can now go forward, allowing Chrysler to re-emerge as a competitive and viable automaker," the White House said after the Supreme Court order, according to CNN. The quick action by the high court was vital to avoid Chrysler's liquidation, CNN said, because the automaker had shut down operations after its bankruptcy filing last month and was losing $100 million a day.