Some of the recalcitrant Chrysler creditors are making a final appeal to reverse the sale and reorganization force fed upon them by the Obama administration:
The U.S. Court of Appeals for the Second Circuit accepted the appeal from a coalition of Indiana pension funds that has sought to block the sale of most of Chrysler’s assets to a group led by Italian automaker Fiat, according to Chris Conner, spokesman for Indiana State Treasurer’s Office.
A hearing is scheduled for Friday, Conner said.
The funds, which hold about $42 million of Chrysler’s $6.9 billion in secured debt, claim the terms of the sale violate their rights as secured lenders by limiting their ability to recover all of their original investment in the company.
The appeal throws an element of uncertainty into the Obama administration’s carefully orchestrated plan to speed the ailing automaker through bankruptcy court.
Presently this cause for the rule of law to prevail is basically symbolic but the creditors deserve praise for persevering in the face of Executive Office thuggery. On a side note, one interesting development is that the current Chrysler plan will probably discharge claims brought by a major Obama constituency, the trial lawyers:
Consumer groups and trial lawyers are crying foul over the Obama administration’s bankruptcy plans for General Motors and Chrysler.
Those plans would extinguish all ongoing auto accident claims that blame a death or serious injury on a defective GM or Chrysler vehicle.