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WASHINGTON – Supreme Court Justice Ruth Bader Ginsburg on Monday delayed Chrysler's sale of most of its assets to a group led by Italy's Fiat, but didn't say how long the deal will remain on hold.
Ginsburg said in an order that the sale is "stayed pending further order," indicating that the delay may only be temporary.
Chrysler LLC has said the sale must close by June 15, or Fiat Group SpA has the option to walk away, leaving the Auburn Hills, Mich., automaker with little option but to liquidate.
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I really can't fathom why these people are sueing. I lnow they want a better deal, more money but it appears this is the best deal they're going to get. If Fiat backs out they get NADA.
They are secured creditors and they were passed over in favor of unsecured creditors. This upended 200+ years of backruptcy law in the US.
I am suprised Ginsberg signed on for this. I hope the SC doesn't allow this horrible precedent to stand.
"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."
Thanks for the answers, all i knew about it was what i heard on the nightly news. That a group was sueing, and that there was no other takers for Chrysler bit Fiat.
Among other things
Some of the "suers", in this case are a bunch of Indiana Pensioners, that invested money into Chrysler. It was written into the contract that were investing securely (kinda like bonds) and that they would make 100 cents on the dollar.
This "deal" essentially leapfrogs the UAW over them in the "table scraps" collection. Now, due to the "Obaminomics" of the deal, that "secure" 100 cents on the dollar is worth about 42 cents on the dollar. In a typical bankruptcy court, they, as secured lenders, would get first dibs. It’s not the way the system works, and they clain it is an illegal deal.
The Appeals court really just voted "present" and signed off on it with a 4 PM deadline today as a way to pass the buck to SCOTUS. If this is allowed to stand, you will see BILLIONS of dollars start draining away from companies where the US has given money to them and will set a terrible president.
Last edited by Patriot_in_NY; 06-09-2009 at 01:30 AM..
That is just one of the issues. Another major part of it is that the deal reportedly halts "current and future" lawsuits from being brought against the "new" owner. It's unconstitutiuonal to deny the rights of people currently uninjured to sue in the future for accidents due to faulty design/parts for millions of the cars that will still be on the road when the sale takes place.
Additionally, one widow joined in on a suit, because she has a pending lawsuit claiming that her husband (who died of lung cancer) contracted the disease sucking in asbestos making brakes. The deal will scuttle that lawsuit, which is illegal based on existing bankruptcy law (which have seperate provisions for asbestos cases). The current "rushed" deal, overlooked these "pesky" details. I suspect this last one touched RBG's "empathy" button.
Last edited by Patriot_in_NY; 06-09-2009 at 01:31 AM..
As has been noted, the Indiana pension fund was, contractually, secured debt, thus first in-line in the event of a bankruptcy.
The UAW funds were unsecured and last in-line. Likely, they would not have receive any money from the bankruptcy.
What Obama basically did was switch the order, putting UAW first in line and the Indiana pension fund last (though they would receive 24 cents on the dollar). Obviously, this is an attempt by Obama to benefit the union, and of course is totally unconstitutional.
If left to stand, it would upend 200+ years of contract law and establish a precidence that the government can rewrite contracts on a whim.