Judge won't delay Chrysler sale: Indiana Teachers Lose in Court

The Boston Globe reports:

A bankruptcy judge denied a motion from a group of Indiana state pension funds to delay the proposed sale of most of Chrysler's assets, saying its plan to challenge the legality of the sale in another court wasn't enough of a reason.

Judge Arthur Gonzalez said yesterday the group failed to show it would suffer irreparable harm, while noting that an expedited sale is key to Chrysler's survival.

Chrysler plans to sell most of its assets to a group led by Fiat Group SpA, of Italy, and form a new company, leaving behind many liabilities and costs that sent it into bankruptcy protection. A sale hearing is scheduled for next Wednesday, with the deal expected to close 30 days later. Without the sale, the government is unwilling to offer the financing the company needs to restructure itself.

The Indiana State Teachers Retirement Fund, Indiana State Police Pension Trust, and Indiana Major Moves Construction Fund objected to the proposed sale, saying the deal as currently structured gives preferential treatment to other stakeholders while ignoring the needs of Chrysler's secured lenders.

We wonder if Judge Arthur Gonzalez understands bankruptcy law and the concept of secured lenders? Do you want to lend money to companies that get "government help" ?