No Stay, So Chrysler Will Go

Much like we surmised yesterday, the Supreme Court has decided not to uphold the Chrysler stay.

The applications for stay presented to JUSTICE GINSBURG and by her referred to the Court are denied. The temporary stay entered by JUSTICE GINSBURG on June 8, 2009, is vacated.A denial of a stay is not a decision on the merits of the underlying legal issues. In determining whether to grant a stay, we consider instead whether the applicant has demonstrated "(1) a reasonable probability that four Justices will consider the issue sufficiently meritorious to grant certiorari or to note probable jurisdiction; (2) a fair prospect that a majority of the Court will conclude that the decision below was erroneous; and (3) a likelihood that irreparable harm will result from the denial of a stay." "A stay is not a matter of right, even if irreparable injury might otherwise result." It is instead an exercise of judicial discretion, and the "party requesting a stay bears the burden of showing that the circumstances justify an exercise of that discretion."&nbsp... applicants have not carried that burden.

There is nothing left that will stop the sale from proceeding. Fortunately the truth came to light (as I reported earlier in "Fiat, Chrysler: So Much for Melting Ice Cubes") and we know that the law is no longer an issue or an impediment in the pursuit of policy objectives.

Disclosure: no positions

Comments

[PPY:]

"a likelihood that irreparable harm will result from the denial of a stay"

irreparable harm?

How about the destruction of the bond market and the collapse of our economy?

Now that secured bondholders have been kicked aside no company can raise capital via selling bonds.

After FDIC wiped out Wamu bondholders, nobody would buy bank bonds and that was why TLGP had to be launched to correct this devastating mistake.

That scenario will now expand to all companies after this.

*imho*

Jun 10 09:08 AM

[Big Bubbette:]

This is a sad day for the Constitution and the rights of individuals and States. We now have a Comrade In Chief. So much for separation of powers. RIP Supreme Court.

Jun 10 10:23 AM

[a. palmer jr.:]

Who would want to invest in corporate bonds now? I've recently sold several corporates that I held and am looking to get rid of all of them in the near future. The Obama team acts like bond holders is the enemy or something...they'll eventually find out the hard way. We're voters too.

Jun 11 12:07 AM