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Cracker Squire

THE MUSINGS OF A TRADITIONAL SOUTHERN DEMOCRAT

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Location: Douglas, Coffee Co., The Other Georgia, United States

Sid in his law office where he sits when meeting with clients. Observant eyes will notice the statuette of one of Sid's favorite Democrats.

Monday, June 08, 2009

I do believe in the "system:" High Court Delays Quick Sale of Chrysler

A 6-06-09 post was entitled "Unlikely, but the appeal by a small group of lenders could prevail. I hope it does. Fiat will not walk, & 1st lien positions were trampled upon here."

A post from early this a.m. was entitled "And he drew near to the Philistine -- I am pulling against Chrysler and Fiat today."

I have been out of town today, and just saw the headlines from the wsj that things have been slowed down at least a day, and maybe more.

The issue is the U.S.-brokered sale of Chrysler that by forced senior secured lenders to write down their loans to the auto maker broke with longstanding tradition concerning rights in a bankruptcy: Senior secured lenders usually are paid in full before lower-priority creditors receive anything. This time, a United Auto Workers retiree health-care trust got a 55% equity stake and $4.5 billion note for its about $10.5 billion unsecured claim while Fiat stands to get an initial 20% stake.

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