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  • Chrysler: Making Bankruptcy Sound Good [View article]
    And the schooling of Barack Obama in the Chrysler Bankruptcy begins in earnest today in Bankruptcy court.

    Read the shaded areas of this article...
    < a href="hotair.com/archives/20.../">hotair.com/archives/20.../

    It outlines why Obama's proposed taking of the collateral assets from the secured (non-tarp) creditors to gift them to Fiat and the UAW violates the 5th Amendment of the US constitution, and cites relevant case law. This was tried during the great depression by FDR and was deemed unconstitutional and illegal by the US Supreme Court, then.

    Hopefully this Judge will grant the motion of the secured creditors and STOP the gifting of these assets to junior unsecured creditors and third parties like Fiat.
    May 04 18:39 pm |Rating: +1 0 |Link to Comment
  • Chrysler: Making Bankruptcy Sound Good [View article]
    Assuming the presiding judge is not a pushover, I think the president is about to get schooled by the Bankruptcy process - he just lost orchestration control of the Chrysler deal.

    With at least a good number of secure creditors objecting to the pre-filing plan/deal, they can tie this up in litigation and objections, to prevent the unsecured creditors (namely UAW) from getting a penny before they, the top-class of secured creditors get all they are owed.

    Lets see if the rule of law will prevail in an Obama administrator and if the hedge funds have the balls to press their claims to the mat.
    May 03 17:16 pm |Rating: +1 0 |Link to Comment
  • Gas Is Cheaper Today than at Almost Any Other Point [View article]
    With the present overcapacity to produce oil and, most importantly, GASOLINE, the big push by governments in North America and Europe to push more fuel efficiency, more diesel use, more electric cars, more renewables, more ethanol, etc.....Gas prices can only go down in the next few years.

    It is inevitable. Go to a dealer and get a great deal on a car/suv with a big engine and low gas miles. That is the smart money. Meanwhile, all those who paid over sticker for a Prius in 2007/2008 are looking like fools and took a huge depreciation bath.
    May 03 17:08 pm |Rating: +2 -2 |Link to Comment
  • More on White House's Strong-Arming of Chrysler Hedge Fund Hold Outs [View article]
    My reading is somewhat different. In the case of Chrysler, there is DISSENT WITHIN THE TOP CLASS - The Secured Debt Holders.

    I find it very hard to believe that a Bankruptcy court can give money to an unsecured creditor, when a top-class secured colloection of creditors is objecting to the deal.

    The cases cited in the article, had either a single top-class (SPM) or a multi-party top class that was in agreement to the "gifting".

    In Chyrsler's case, the top-class of creditors is not in agreement. I know Bankruptcy is governed by creditor committees voting, but I don't see how a court can ignore the claims of a secured creditor.

    I'm interested in opinions from Bankruptcy lawyers.


    On May 03 05:23 AM Homer II wrote:

    > Well, if I read the linked article regarding "Absolute Priority Rule"
    > correctly, it seems that, in the case of Chrysler, who appears headed
    > for CH 7, the pre-bankruptcy agreements between senior creditors
    > (Big banks who took TARP and are now being coerced into these agreements
    > by the Government) and unsecured creditors (ie: seekingalpha.com/symbo...)
    > is legally sustainable and likely to be approved and upheld if appealed.
    May 03 17:03 pm |Rating: +6 0 |Link to Comment
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