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| Chrysler's sale to Fiat delayed | Chrysler's sale to Fiat delayed |
| (20 minutes later) | |
| The US Supreme Court has granted a request to delay the sale of carmaker Chrysler to a group led by Italian carmaker Fiat. | The US Supreme Court has granted a request to delay the sale of carmaker Chrysler to a group led by Italian carmaker Fiat. |
| Three Indiana state pension and construction funds filed papers at the court on Sunday calling for the sale to be halted so they can pursue an appeal. | Three Indiana state pension and construction funds filed papers at the court on Sunday calling for the sale to be halted so they can pursue an appeal. |
| The Obama administration, which strongly backed the sale, had called on the court to reject the request. | The Obama administration, which strongly backed the sale, had called on the court to reject the request. |
| The court said Chrysler's sale was "stayed pending further order". | The court said Chrysler's sale was "stayed pending further order". |
| Chrysler entered bankruptcy protection in April following a massive slump in sales brought on by the financial crisis. | Chrysler entered bankruptcy protection in April following a massive slump in sales brought on by the financial crisis. |
| 'Grave consequences' | |
| The US government had strongly supported its sale to the Fiat-led consortium, which would allow it to emerge from bankruptcy. | The US government had strongly supported its sale to the Fiat-led consortium, which would allow it to emerge from bankruptcy. |
| Fiat would control 20% of Chrysler, while 68% would be owned by a union trust, and the two governments would share 12%. | |
| However, the pension funds, which hold about $42m (£26.3m) of Chrysler's $6.9bn in secured loans, are opposed to the sale. | However, the pension funds, which hold about $42m (£26.3m) of Chrysler's $6.9bn in secured loans, are opposed to the sale. |
| They say it inverts usual bankruptcy practice and unlawfully rewards unsecured creditors, such as the union, ahead of secured lenders. | |
| Earlier, the Obama administration said that blocking the deal would have "grave consequences". | |
| Solicitor General Elena Kagan said that blocking the sale could force Chrysler into liquidation. | |
| Chrysler had filed for bankruptcy protection on April 30 and had aimed to complete the sale and alliance with Fiat within 60 days. | |
| The Chrysler case could also set a precedent for General Motors, which entered bankruptcy protection on 1 June. |