June 5, 2009

Indiana Loses in Chrysler Bankruptcy Ruling

2nd Circuit Rules in Chrysler's Favor, OK's sale to Fiat.  Indiana has until 4pm Monday to get the Supreme Court to step in.  Apparently, the decision by the Supreme Court is in the hands of Ruth Bader Ginsberg.

A creditor bid for Supreme Court intervention would likely go first to Justice Ruth Bader Ginsburg, who handles emergency matters from the New York-based federal appeals court that ruled Friday. She could act on her own or refer the request to the full nine-member court. The votes of at least four of the nine justices are required for the court to consider the appeal.

Dennis Jacobs, the chief judge on the panel, asked Lauria what the bankruptcy court should have done.

"The motion should have been denied," Lauria said.

"There were no other bidders," Kearse told him. "It seems the bankruptcy court had no alternative."

The alternative is to close Chrysler and sell it's assets to pay back it's creditors. If Fiat backs out, them's the breaks.  It's hard to understand how judges can dispense with the law just because they want Chrysler to survive.  If the law says secured creditors are at the top of the line and the President pushes them to the bottom, what difference does it make in the eyes of the law what the end picture of Chrysler ends up being?

What does the law mean to anyone if it can be overcome by events so easily, so quickly.

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