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Supreme Court delays Chrysler's sale to Fiat

Discussion in 'Political Discussion' started by Holy Diver, Jun 8, 2009.

  1. Holy Diver

    Holy Diver Rookie

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    #80 Jersey

    Court adds uncertainty to Chrysler reorganization - Yahoo! News

    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.
  2. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    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.
  3. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    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.
  4. efin98

    efin98 Rookie

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    One of the parties suing is of the belief that they will actually get more back if the company is liquidated rather than sold...they recoup less with the sale, so they want the liquidation.
  5. Patriot_in_NY

    Patriot_in_NY Rookie

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    Asked;

    Answered;

    That is about all there is to it. You know if RBG signed in it, something doesn't smell right. I'll plunk down hard money, if the deal doesn't collapse altogether first, SCOTUS nukes this one.

    We have an entire court system to figure this sh!t out, Lord Obama can't just nuke the system, so that he can "pay" the unions back by leap-frogging them in front of secured investors.
  6. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    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 but Fiat.
    Last edited: Jun 9, 2009
  7. Patriot_in_NY

    Patriot_in_NY Rookie

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    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: Jun 9, 2009
  8. Patriot_in_NY

    Patriot_in_NY Rookie

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    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: Jun 9, 2009
  9. ljuneau

    ljuneau Rookie

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    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.
  10. Holy Diver

    Holy Diver Rookie

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    U.S. Supreme Court will not stand in the way of Chrysler sale to a consortium led by Italian automaker Fiat.

    CNN.com - Breaking News, U.S., World, Weather, Entertainment & Video News


    so.....


    The former Axis of evil has successfully taken over the auto industry .... Germans, Japanese, and now the Italians.

    The Comunist Chinese own our debt ....

    We outsource torture to Cuba ....

    Budweiser is a Belgian company....



    I think we need to sell the NFL to Russia and we will have successfully SOLD-OUT as a nation.
    Last edited: Jun 9, 2009
  11. tanked_as_usual

    tanked_as_usual Banned

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    here's a hanky
  12. Patriot_in_NY

    Patriot_in_NY Rookie

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    It's Official......... 200 years of the rule of law, tossed out for expediency. We have official.

    [​IMG]
  13. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    The Constitution gets thrown under the bus again....what a disgrace.

    This will hurt all US businesses, when contracts don't mean anything and the government can voerturn bankruptcy law, who the hell would want to buy a 'secured' bond????

    We are bwcoming a banana republic.
  14. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    It's tough to play the game if you don't know the rules. Whatever part of "business" you're looking at now, even as a consumer, there is no way to know when the obamans will change the rules.
  15. ljuneau

    ljuneau Rookie

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    The basic foundation of capitalism has just been destoryed - the written contract.
  16. Real World

    Real World Moderator Staff Member

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    Hey, Obama did what he did, but the Supreme Court totally turtled here. Obama tried, and he succeeded. He's only doing what he thinks is right. The SC blew it here, cuz they are supposed to step in when the law is not protected.
  17. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    According to FOx and CNN the deal is final..
  18. tanked_as_usual

    tanked_as_usual Banned

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    blind love
  19. Fogbuster

    Fogbuster Rookie

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    And you know when it really started: when the left-wing Congress decided 30 years ago it would turn 300 years of successful banking mortgage lending on its head. People can scoff all they want, but when the history books get written by people genuinely looking for the cause of the effects we now see, they will unanimously conclude it began with the Community Re-investment Act.

    Innocuous sounding, "fair"-minded, "just trying to help the underclass" .... yes, there's some truth to that; but the price of all that "feel-goodism" has been the utter collapse all that has held the principles of banking and lending together since time immemorial: you only borrow what you can pay back, and you NEVER make up different rules for different people.

    Now we may be using the Chinese yuan as our legal tender. Thanks to Jimmy, Bill, and their left-wing Congresses.

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