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US apex court refuses to stay Chrysler-Fiat deal

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Press Trust of India NewYork
Last Updated : Jan 20 2013 | 9:33 PM IST

The US Supreme Court has refused to stay the much-touted Chrysler-Fiat deal, paving the way for the bankrupt American auto maker to steer itself out of bankruptcy soon.

A group of pension funds from Indiana had approached the apex court to stay the proposed deal between Chrysler and Italian car maker Fiat.

The planned deal would give Fiat a 20 per cent stake in the battered Chrysler, which filed for bankruptcy protection in April.
"The applications for stay presented to Justice Ginsburg and by her referred to the court are denied.

"The temporary stay entered by Justice Ginsburg on June 8 is vacated," the Supreme court said in a two-page order.
According to the apex court, the "burden" of showing that circumstances warrant a stay on the transaction, is on the Indiana pension funds.

Noting that a stay is "not a matter of right", the Supreme court said, "...The party requesting a stay bears the burden of showing that the circumstances justify an exercise of that discretion...

"The applicants have not carried that burden," the court noted.

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First Published: Jun 10 2009 | 8:40 PM IST

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