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.

After the rulings in the Chrysler Chapter 11 case, I suspect companies with financial difficulties are going to have a difficult time borrowing money, even if they have good collateral to put up. Why? Based on this case, first lien positions might be ignored.

From The Washington Post:

A decision this week by a federal appeals court to take up the objections of a small but tenacious group of Chrysler's senior lenders likely means the automaker will have to delay plans to sell itself to Italian carmaker Fiat, experts said Wednesday.

Whether the delay becomes detrimental to Chrysler's plans -- and by extension, to General Motors -- remains to be seen. But several legal analysts who have closely followed the case said a likely outcome is a delay of several days that would still allow the sale to proceed before a critical June 15 deadline.

Under the terms of the government-orchestrated sale of most of Chrysler's assets to a new entity owned by Fiat, the United Auto Workers, and U.S. and Canadian governments, the senior or first-lien lenders would recover 29 cents on the dollar. The Indiana funds contend that their property rights were violated because they are receiving less than junior lenders. The funds also say the government did not have the authority to use federal money from the Troubled Assets Relief Program to rescue automakers.

Gonzalez, the bankruptcy judge, disagreed, saying late Sunday that the sale represented "fair value" and that "not one penny" would be going to anyone other than first-lien lenders.