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.