http://news.yahoo.com/s/ap/20090608/ap_on_bi_ge/us_supreme_court_chrysler
Indiana funds, which hold a small part of Chrysler's secured debt, claim the sale as structured unfairly favors Chrysler's unsecured stakeholders ahead of secured debtholders like the funds.
As part of Chrysler's restructuring plan, the company's secured debtholders will receive $2 billion, or about 29 cents on the dollar, for their combined $6.9 billion in debt. The Indiana funds bought their $42.5 million in debt in July 2008 for 43 cents on the dollar.
The funds also are challenging the constitutionality of the Treasury Department's use of money from the Troubled Asset Relief Program to supply Chrysler's bankruptcy protection financing. They say the government did so without congressional authority.