WASHINGTON (CNN) - The Obama Administration Tuesday urged the Supreme Court to drop the stay which temporarily halted the sale of Chrysler, arguing Fiat alter the deal or walk away if it isn't approved by next week.
"If the sale is not consummated by June 15, there is a substantial possibility that Fiat will abandon the transaction or insist on materially different terms as a condition of its participation," Justice Department lawyers said in a brief filed with the Justices.
"It is also undisputed that Chrysler's condition worsens each day it remains in bankruptcy and that Fiat is aware of that situation," the government said.
"While Chrysler remains in bankruptcy with no confirmed alternative to liquidation, its situation deteriorates," the government argued.
Supreme Court Justice Ruth Bader Ginsburg granted a stay to opponents of the sale who stand to suffer major investment losses if the transaction with Fiat is approved.
Obama is not following contract law regarding Chrysler and GM. The car czar is forcing closing dealers to SIGN GAG ORDERS. The secured bond holders are placed behind the UAW to get repaid. This is against the constitution and Federal Law. Welcome to Fascism.
So it can just be liquidated, all the jobs can be lost, and the pension fund filing the suit (of which the disputed amount equals 1% of thier fund by the way) will get 10 cents a share as opposed to 27 cents per share....
@ William Hoffman
And you know what everybody gets if the company simply implodes after completely bleeding out? NOTHING. You know who continues to work there and take home paychecks if that happens? NOBODY. The pennies-on-the-dollar whining gets you nowhere because the alternative was so clearly worse than what's happening now that it should be considered purposefully misleading to make the arguments you make. If the gov't hadn't stepped in, nobody would be going home with one red cent, so of course the creditor heirarchy changed...and equitably so.
That pension fund is owed $17M and will receive $12M under the deal, which as approved by a federal bankruptcy judge (leading to the appeal). Ginsburg issued the stay so nothing would happen before the SCOTUS could review the briefs and make a more informed and lasting decision. Most legal experts believe the stay is going to be lifted after review.
To typical republican,
In case you have failed to notice osama,oops I mean obama has spent more money on pork in his short stint as wall st toadie than bush did in his first term. Mind you that I think bush is a repugnant human being and a completely unqualified looser, but obama is no better. All politicians do as they are told thats why they got elected in the first place. As for doing nothing for those famalies in detroit, or anywhere else, that is exactly what he has done, nothing. Well except for foisting a tax burden on their childrens children and making america and americans look like moronic suck ups to the entire world, he really shouldn't have kissed the saudi kings ring, that was pathetic.
I never fails to amaze me how some here are so gulible to believe that it is all Obama's fault on what has happened to the country. Folks, it is your own fault. You are the ones that want cheap goods from China then cry when you have lead in your children's toys. Your choice to back a communist government. You cry about the car makers but those of you who have bonds voted against them because of your greed. Two weeks ago, everyone was up in arms about the swine flu, now it is on the back burner.
I will state that I agree with you. Since the President took office, life in the USA has ended as we know it. Before the 20th of January, life was perfect.
I just want to make sure that everyone is clear on a couple of facts. The people that lent money to Chrysler are getting less money than the UAW. Anyone care to give an answer as to how that can happen?
I say let the Chrysler deal go through! Enough of this!
What right does the Executive Branch (Obama) have to tell the Judiciary what it should or should not do?
Hurry! Rush it through just like we did TARP and the "stimulus" bill before the American people see what a sham it is. The senior debtholders are actually fighting for a basic right in U.S. commerce law if that means anything anymore. Once you start ignoring the Constitution willy-nilly, all sorts of unintended consequences follow.
Remember all, what President Hussein wants, President Hussein gets.
U.S. Under Stood. really? Under Stud is better. The Black Stallion.
No really just a Donkey. Punda. in Swahili,.
From the Petitioners' Brief:
"Critically, the Sale Motion is premised on a $2 billion cash payment, which arose from a liquidation valuation rather than a going-concern valuation, of the Collateral to be sold to New Chrysler. That is, while Chrysler is operating these assets now and will continue operating them as part of New Chrysler (where they were valued on a going concern basis at $20-30 billion), they valued those same assets on a liquidation basis at less than $2 billion for purposes of justifying only a partial payment to the First Lien Lenders. This unprecedented shift in valuation methodologies (which is not permitted by section 506(a) of the Bankruptcy Code) effectively diverted most of Chrysler’s value away from the secured and unsecured claims of the First Lien Lenders to the unsecured creditors selected by Treasury who will be receiving substantial value on their unsecured claims from New
To GOP says if your a Muslim – If you haven't served one day in the military, or as a matter of fact, one day in Afghanistan, then shut your mouth about finding Osama. He is no match anyway for this thing we have in office now. As a matter of fact, why don't you ask your boy Bill Clinton (A lot worse than Bush...either of them) why didn't he go after Osama. Oh wait, he was too busy having a cigar with Monica.
Justice Ginsburg has just set precedent: Presidential fiat (no pun intended) is now more powerful than contract law. Oops – there goes another little bit of individual freedom.
Hey court...Did you not hear Obama?
He said "So let it be written. So let it be done."
That should trump any man made "law".
Bush left you with spit.......You sheep believe everything the right wing spin-sters tell you.....Neither Joe Scarborough nor anyone else is going to dig you out of your hole......Your philosophies are warped......Your loyalties are misplaced.....With US (Lefties) it's country first.....McCain said it......We mean it......
typical that the Obama administration is trying to rush something else through with out complete review. I realize we need to fix things but come on use some common sense.
How it is staggering how clueless people are. The bondholders are not greedy wolves, they want what you would want if you were in their place. Simply put Chrysler / those pulling the string are running a scam. Read what is really happening people and not just the blogs. Chrysler is making a shell company and dumping all it positive assets into it and having Fiat invest some car designs into the company we will call the new Chrysler which will be owned by Fiat, UAW and us the taxpayers. What is left of the old Chrysler is all the bad assets and the secured bondholders get the scraps from that, when by law hence the word secured they should have top priority. What the best thing about this is it is being called a Republican attack and it was upheld by the currently and debated most liberal member of the high court. Even she said boy something stinks here and in a big way. Go read people past the blogs. And for those who say if Chrysler goes totally bye bye and the bondholder won't get anything, how saddly wrong you are. The company will be liquidated and the bondholder being first dibs not the unions and outsiders will get their money back.
Hopefully the stay will last long enough to force Chrysler into Chapter 11 Bankruptcy and not allow them chapter 7 ,thus saving the Tax payer Billions in further payments.
Why don't all of the out of work UAW workers demand help from the mafia, now that they have all bankrupted the auto industry. They funded the mafia for decades so turn about is fair play....right???
For those who think Obama is a highly intelligent man, which even though I did not vote for him, but have to support him because he did win, and I happen to love the USA. Do you think Obama and his advisors honesty think GM and Chrylser are going to make this huge comeback. No they are dead, but what causes panic in a populace, suddenly collapse of anything. By buying these companies all he is doing and allowing a gradual demise which the public will accept more than shutter the doors we are done. It will happen over the next few years, The simple fact is the cars are poor quality and people stopped buying them. While they are trying "redesign" everyone else is decades ahead.
Yes, let's have it go down. You will see a great return, then, in your investements!
"This seems to be an illegal bankruptcy being rushed through so the uaw can own the major share of the company, and who is in the uaw's back pocket?"
Dear fellow Dem,
The reality is the bankruptcy is legal and needed. Chrysler is a failed company now on its second bankruptcy. Although it employs thousands still, this is the only alliance that could be agreed on to save jobs. Frankly, no other company even wanted Chrysler. Its the UAW and Fiat or BUST!! I find no better partner than the UAW since the employees now have a say so to some degree in this new venture. Now we can move on to more important issues facing this country!