Supreme Court Grants Delay
Not so fast. The US Supreme Court has decided to hear the claims of the secured debt holders in the Chrysler bailout. In a normal bailout their claims would take precedent over those parties with unsecured interests in the company. But the federal “bailout” has demanded that the secured interests compromise their traditional legal standing in bankruptcy proceedings.
A federal appeals court approved the sale of Chrysler’s assets but it gave opponents of the plan time to appeal to the Supreme Court.
Ruth Bader Ginsburg halted the sale – at least temporarily. It is not clear, as of today, whether the entire Court will hear the case.
You can see the AP report here .
Hat tip: Lauri Regan