How much is Chrysler's bankruptcy costing the Major Moves fund?

By Kirk Mason (mason@wsbt.com)

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By Beth Boehne

Story Created: Jun 3, 2009 at 2:33 PM EST

Story Updated: Jun 3, 2009 at 2:33 PM EST

Doug Irvine of South Bend has a Good Question: "What was the cost to the Major Moves fund, lost through the purchase of Chrysler bonds last September?"

Major Moves is the name of the Indiana Department of Transportation road building program. That fund is now out $896,000.

Indiana had invested as a secured creditor in Chrysler; but following bankruptcy proceedings the state is now receiving 29 cents on the dollar for that investment.

The good news is while $896,000 is a lot to you and I, it is not all that much when it comes to the state's road construction fund. For example, in 2010 Indiana is budgeting $545 million on Major Moves.

But State Treasurer Richard Mourdock says this situation is changing policy. He will no longer invest state money in secured corporate debt of businesses receiving an infusion of federal money.

But it's worse for the Indiana's Teacher's Retirement Fund — they're out $4.6 million.

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