IN State Treasurer Says Pension Funds "Ripped Off" by
Chrysler Bankruptcy
May 26, 2009 (PLANSPONSOR.com) - State Treasurer
Richard Mourdock says the state cannot allow its "retired
police officers and teachers to be ripped off by the federal
government."
Speaking about the filing of an objection with the
bankruptcy court handling the Chrysler LLC proceedings on
behalf of the Indiana State Police Pension Trust, Indiana
State Teachers' Retirement Fund and the Major Moves
Construction Fund, Mourdock says the proposed
restructuring seeks to pay billions of dollars to
unsecured Chrysler creditors, while paying secured
creditors only 29 cents on the dollar, according to The
(Munster) Times.
The news report said Associate Professor of Finance
Matt Will says Chrysler's plan "disrupts 100 years of
bankruptcy law." He added that Indiana stands to lose $30
million in investments under the bankruptcy plan.
Last week a U.S. Bankruptcy Court judge turned away
an attempt by the pension funds to block the sale of
Chrysler assets (see
Indiana Pension Plans Lose Shot at
Blocking Chrysler Asset Sale
).
Rebecca Moore
editors@plansponsor.com