(H/T – Alamo City Pundit)
The AP reports that, fresh from a denial by bankruptcy judge Arthur Gonzalez to delay the expedited sale of portions of Chrysler to Fiat, the US and Canadian governments, and the UAW, three Indiana trust funds that held senior secured debt in Chrysler, the Indiana Major Moves Construction Fund, Indiana State Police Pension Trust (both managed by Indiana’s Treasurer, Richard Mourdock), and the Indiana State Teachers Retirement Fund will be appealing to district court to try to stop the sale and the 29-cents-on-the-dollar return for the senior secured creditors.
The Louisville Courier-Journal puts the losses suffered by the teachers’ fund at $4,600,000, the police fund at $147,000, and the road-construction fund at $896,000. The NEA, which just took over operation of the largest teachers’ union in Indiana after possible fraud committed by the union’s insurance arm, can’t be happy about that.
As a result, Treasurer Mourdock has instructed the funds run by his office to not buy any more secured debt from companies receiving federal bailout money. I guess we can now add state/local public capital to the list of capital no longer flowing to bailed-out companies.
