WASHINGTON (AP) — The Supreme Court has declined to take another look at Chrysler’s bankruptcy.
The justices on Monday turned down an appeal from the state of Indiana pension funds that earlier challenged the automaker’s bankruptcy proceedings.
The bulk of Chrysler LLC’s assets were sold to Italy’s Fiat.
The court previously rejected the pension funds’ effort to block the sale.
In the latest appeal, the funds argued that the arrangement worked out with Fiat, and approved by federal courts, violated federal bankruptcy law. The pension funds said they were not trying to reverse the bankruptcy sale, but instead wanted to recover money for themselves and other Chrysler creditors.
Bankruptcy attorney Jeffrey A. Schreiber said the court’s decision was “predictable.”
“If the state has been granted a stay at the lower court level and they appealed, they would have had a better chance to recover the money. But when the ultimate stay was denied, their appeal became moot. Chrysler’s assets have been sold and disposed of.”
When Chrysler exited from bankruptcy June 10, after a 40-day stay, its best assets were sold to the government-sponsored Chrysler Group LLC company.
The old Chrysler is now referred to as Old Carco. It remains in bankruptcy and is being liquidated.
• K.O. Jackson, Tribune business writer, contributed to the report
