Mourdock: Fighting Chrysler bankruptcy sale "gutwrenching" and a duty

Program: WVPE Features

Reporter: Jeannette Dillon, NIPR/IPBS, Fort Wayne

Airdate: 06/03/2009

Indiana Treasurer Richard Mourdock announced Wednesday morning that his office's petition for a stay in the bankruptcy sale of Chrysler has been granted which means the scheduled sale of Chrysler set for noon Friday, June 5th, will NOT occur.

Representing the State Police Penison Fund, the Indiana Teacher's Retirement Fund, and the Major Moves Construction Fund, Mourdock argues 150 years of bankruptcy law has said secured creditors - like those three funds - are the first in line for repayment in the event of a bankruptcy.  Mourdock contends the Chrysler bankruptcy deal breaks the law by allowing unsecured creditors to receive more than secured creditors.

 

He tells IPBS's Jeanette Dillon that the US government is orchestrating a deal by which 20-percent of a major US corporation will be GIVEN to a foreign corporation, Fiat, without the requirement that Fiat invest a penny.

 

Mourdock says that's fundamentally wrong and the government doesn't have the right to pick winners and losers in that way.

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