Emergency Filing: Chrysler Creditors Take Obama to Supreme Court

Hey, can we get a little help here?
This is nothing short of Americans asking the Judiciary Branch to step in and exercise its check and balance powers to stop an out-of-control Executive Branch. Our Republic is held together by such power, and in this instance, the Supreme Court is the last bulwark against an authoritarian president nationalizing a private company and extinguishing Constitutionally protected contract and property rights to reach his goal of giving the company to his political allies.

From WSJ.

A group of Indiana pension funds opposed to Chrysler LLC’s sale to Fiat SpA filed an emergency appeal with the U.S. Supreme Court to stay the sale while they continue their attempts to block it. . . .

Under Supreme Court practices, individual justices field emergency motions and Justice Ruth Bader Ginsburg will handle the filing. She could rule herself or refer the motion to the entire court. Justice Ginsburg can also reject the appeal outright or request other parties involved in the case file briefs on a tight schedule.

The Indiana pension funds have argued the sale is unconstitutional because it puts the rights of junior creditors ahead of the rights of senior lenders. The funds also argue the U.S. Treasury Department has overstepped authority given to it by Congress under the Troubled Asset Relief Program by financing Chrysler’s restructuring. . . .

Under Chrysler’s plan, the bulk of its assets would be sold to a new company, referred to as New Chrysler. Old Chrysler will wind down its remnants in bankruptcy and work to repay creditors.

Fiat would initially own 20% of the new company, though it would have the option of increasing its stake to as much as 51%. A United Auto Workers health-care trust would initially get a 55% stake, while the U.S. and Canada, which are lending Chrysler $4.9 billion during the bankruptcy, would own 8% and 2%, respectively.

Senior lenders owed $6.9 billion would receive $2 billion, giving them a recovery of about 29 cents on the dollar. The Indiana funds own about $42 million of the senior debt.

Thankfully, there are brave Americans who are willing to take on an dangerously left-wing White House, despite the very real prospect that whether they win or lose, they will be punished in some way for their insolence. Authoritarians are not a forgiving bunch.

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