Indiana Treasurer on Chrysler-Fiat Halt

Published: Wed, 3 Jun 2009

Description: Indiana Treasurer Richard Mourdock on the Chrysler bankruptcy sale hitting a roadblock in his state.

Automatically Generated Transcript (may not be 100% accurate)

" meanwhile the president bankruptcy may have been a very very big road -- the US court accepted an appeal filed by an Indiana pension fund to -- Halts the sale of Chrysler to Fiat. Cries -- look like it was going to get out -- from the next guest says not so fast. He is Indiana treasurer Richard -- it easier to explain. Wise tickets of the court in treasury -- have -- you have the doomed mission that you prove me wrong on the witness stand now."

" Well I think some of look at us this kind of a little training could we keep heading up the hill we keep saying we're going to do this. Where we're headed right now the court has as you just said issued a stay against the sale of bankruptcy. We will have a hearing on Friday and the important points of law that we have been emphasizing from day one. That secured creditor. Has meaning. That the TARP program is being used illegally and that the federal government's role in this entire bankruptcy. Has been under the table and done improperly those are reports of long run."

" But if you really don't know on any one of those points -- mean that on does the entire Chrysler deal and then it's in bankruptcy. Maybe substantially longer and maybe never coming out."

" I understand that nearly you know I've been asked can you have to understand we have 7000 Chrysler employees here in this state this has been a gut wrenching ordeal for me. But as I've told them as recently as today it is about the law if we do not follow the law in this country we don't have to worry about having an economic foundation. Trying to create a new economy while at the same time the administration is trying to destroy the very foundation of investing in that role of secured creditors. Is antithetical it is wrong. Now."

" Their argument is as we discussed last time treasure when -- nice enough to be here is that. I think I heard there -- a bad deal is better than no deal another words that yes some creditors might figure gadget that's in fact severely counts. But they have a shot -- coming out of this with a revive Chrysler. "

" And making even some money on the deal what do you say that. Well you're saying a bad deal is okay if we just ignore the law we cannot ignore the law you know I understand there is great pain with the situation they're paying for all of these data I don't know to be -- and I don't know it's a concurrent assignment. There they're saying the law doesn't apply in a special situation like this because you have a government. Intervening so the the legal precedent is such that there is no precedent. Well I I totally disagree with that I mean you cannot have a situation where the laws ignored the same administration that is saying that the Bush Administration. Even when the smoke was hanging in the air over New York City. Couldn't go beyond the law to interrogate prisoners is now saying that this crisis is sufficient that they can just ignore ignore the law totally -- You know that is -- very happy to have analogy I'm -- that want to use your free use an issue like -- please do our treasure it's always good having it thank you very much. Thank you great you're back with."

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plan agreed to before. They called and sub Rosa plan before a Chrysler . File for bankruptcy but again -- Gonzales said no that's just not the case that took the appellate panel's going to get the three judges on the appellate court. There also going to be considering Chrysler's motion to certify the sale. If that happens if the -- of pensioners lose at Chrysler rigs in the sale is certified. You can expect that -- the clothes almost immediately because Chrysler says it has to close the deal with Fiat. By the fifteenth of June or else Fiat has the option to walk away from the table and worse it walks away with 35 million dollars. From Chrysler as a penalty for failing to close the deal. There's a lot riding on this decision today Alexis one other thing regards that -- on the report. That the Chinese are making perhaps. Problem is to closing that deal because numbers aren't fuel efficient Hummer dealers we'll tell you that needs to be. Smaller numbers built on the Chevy Colorado platform. I'll tell you it gets better gas mileage on the highway -- some of the imported suvs like the Lexus so that's an argument that there probably ready to fight. Back to you.

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I've got the Gonzales to approve the outbid by what's called new Chrysler new. Which essentially you need 300 million other US taxpayers along with the Canadian government the UAW retiree trust and of course he got. Thanks to approve the bid for that new Chrysler to purchase assets from all of Chrysler so essentially with the judge's approval. New Chrysler leaves bankruptcy court leaves all of all Chrysler by. What is old Chrysler if what they indeed the bad assets things like this stepping planted twins -- wild wild stopping got its just outside Cleveland -- the protest and twins right. Not too long ago the employees there. Fighting to keep that plant open because it's one of the plant. That would be closed they would remain with the old Chrysler here in the bankruptcy proceedings now in addition to all of that the judge is going to hear -- motions from dealers 300 of them. Who say they're getting saddled with all kinds of Chrysler problems inventory that they were urged to take these -- alive now they can't get laid out. Those in the 300 of them among 789. We're being cut loose by the company although these motions are in the works. Everyone expects the judge to approve the sale to Fiat essentially. Later this morning possibly earlier this afternoon.

expected to approve the sale. A crisis key assets to a new joint venture with Fiat. The group of angry dealers is still trying to put the brakes on the plant. Speaking of which let's get right to the panel Chrysler would go directly down to Adam Shapiro who is alive out. Outside the New York bankruptcy court in lower Manhattan with a

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Well they want to close the deal with Fiat the reason Fiat won't walk and why they're telling it now on why the bluff was called the getting Chrysler for nothing. They take up distribution in the United States which stated don't have. Chrysler sold to found that 2000000 and two and a half million units -- late he had only sold two million so immediately you double creek. You'd double the amount of course you're selling that they need Chrysler Fiat its -- very badly and they get it for nothing they're getting it's not one --

as long as the bankruptcy or at least the sale of Chrysler Fiat hasn't emerged yet they haven't been allowed to go forward. There's hope that these others who have. Different issues. Can keep their issues alive there's another issue though that you talked about Fiat saying they won't -- The exact quote from -- Sergio mark you know being confirmed by his press people is that Fiat . Will never walk away this is crucial because essentially what the Indiana pensioners have done is they've called a huge -- bluff. By at Chrysler and Fiat that the deal dies on June 15. And what Fiat is saying is no we won't walkway and Fiat really can't walkway they need Chrysler or else they won't exist in the future they want to be the sixth largest carmaker

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