Justice Ginsberg stays Chrysler sale
June 9, 2009
In early May Adam posted on his concerns over the Obama Administration’s deal to bail out Chrysler. Adam considered that the approach taken, especially the preference given to the UAW over the legitimate claims of other creditors was wrong.
It would appear that others may think so as well. The Treasurer of the State of Indiana has persuaded Supreme Court Justice Ruth Bader Ginsberg to stay the sale . It will be very interesting to see what happens from here, including whether pressure is brought to bear on the Indiana official.
It may well be that the Supreme Court may take the view that the deal which overturns established US bankruptcy law is not acceptable.
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