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DETROIT-Chrysler’s quick bankruptcy restructuring, which was lauded earlier this month by President Barack Obama, has hit a major roadblock. After complaints from Indiana state pension funds, the Supreme Court is delaying the sale of the locally-based automobile manufacturer to Italy’s Fiat.

The pension funds leaders claim the bankruptcy court did not give enough attention to the lenders in the restructuring process. After appealing to several lower courts and being denied, Supreme Court Justice Ruth Bader Ginsburg grated the pension funds request to stall the sale.

Now the Supreme Court needs to decide whether to hear the case or defer to the lower court’s ruling. It’s expected that the court will move quickly either way, as Fiat has given June 15th as the drop dead date for the sale to go through. Fiat’s CEO has been quoted previously as saying he has no problem letting the deal go under.

The Indiana pension funds behind the Supreme Court request lent Chrysler a total of $42 million but will receive only $0.29 for every dollar under the current deal.

Chrysler owns 3,188 dealerships in the US, although 789 of them have been selected to shutter under the Fiat deal. The company also has 22 US plants.

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