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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (35402)	5/6/2009 4:37:12 PM
From: DuckTapeSunroof	Read Replies (2) \| Respond to of 71588

(I'd already read that opinion piece on the Blog... but he never exactly made CLEAR what - if anything - he actually thought was a "violation" of US Bankruptcy Law.) Bankruptcy law has a specific provision in chapter 11 situations such as this one --- (where the main GOAL is to reorganize the enterprise so that you emerge from bankruptcy as a viable ongoing business... not in a 'blow it up and sell the scrap metal off' complete liquidation, which is a different thing) --- permitting a concurrence of two thirds of the creditors to legally MODIFY the debt hierarchy.... (And here, they ALREADY have more then 90% of the creditors onboard --- well more than the legally required two thirds....) Also, in bankruptcy court, great preference is given to whomever shows up with enough CASH to lend to the distressed company to permit it to successfully reorganize and then emerge from bankruptcy --- so-called "debtor-in-possession financing". Here it's Uncle Sammy stepping forward as debtor-in-possession and loaning Billions (while the pitiful few remnants of the Hedge Fund speculators who are opposed to the plan of reorganization are unwilling to put up a single red cent to help reorganization along.... :-) In short: nothing 'illegal'. All WELL within the bounds of established US Bankruptcy Law. (And, the last offer the government made to the dissident speculators, prior to bankruptcy, was 33 cents on the Dollar. That was the highest and best price they were ever likely to get... minute by minute Chrysler's value is declining. There are no other bids. In a liquidation they would be lucky to get two cents on the Buck. <GGG> Message 25622601