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Supreme Crt Stays Chrysler Sale – Update

[Please scroll down for update.]

From an annoyed Reuters:

Chrysler attorney Corinne Ball exits Manhattan federal court, Friday, June 5, 2009, in New York.

Supreme Court asked to delay Chrysler sale

By James Vicini – Sun Jun 7

WASHINGTON (Reuters) – Indiana pension funds asked the Supreme Court on Sunday to immediately delay the sale of bankrupt automaker Chrysler LLC to a group led by Italian carmaker Fiat SpA while they challenge the deal.

The request, which moves the legal battle to the highest court in the United States, was filed after a U.S. appeals court in New York approved Chrysler’s sale to a group led by Fiat, a union-aligned trust and the U.S. and Canadian governments…

The appeals court late on Friday stayed the closing of the sale until Monday afternoon, giving the pension funds time over the weekend to ask the Supreme Court to block the sale while they appeal.

The pension funds, which hold about $42 million of Chrysler’s $6.9 billion in secured loans, have argued the sale unlawfully rewarded unsecured creditors such as the union ahead of secured lenders and that Chrysler was pursuing an illegal reorganization plan through a sham sale.

"The need for the court to review the profound issues presented by Chrysler’s novel bankruptcy sale far outweighs the cost of delaying" a sale, lawyers for the pension funds and the Indiana attorney general said in seeking an immediate stay.

The three state pension and construction funds also argued the U.S. government, which kept Chrysler afloat with emergency loans before the automaker’s bankruptcy and financed its Chapter 11 filing, overstepped its authority by using bailout funds Congress intended for banks.

"The public is watching and needs to see that, particularly, when the system is under stress, the rule of law will be honored and an independent judiciary will properly scrutinize the actions of the massively powerful executive branch," the lawyers said.

"The issues presented by this case are of immediate and enduring national significance," they said.

Without a stay from the Supreme Court, the sale will close on Monday, the lawyers said…

The request to stay the deal was filed with Supreme Court Justice Ruth Bader Ginsburg, who has responsibility for such emergency matters from the New York-based appeals court.

Ginsburg could act on her own or could refer the matter to the full court. A stay from the full court would require the votes of five of the nine Supreme Court members.

They have an excellent case. But of course it will matter not.

The three state pension and construction funds also argued the U.S. government, which kept Chrysler afloat with emergency loans before the automaker’s bankruptcy and financed its Chapter 11 filing, overstepped its authority by using bailout funds Congress intended for banks.

Funny how our watchdog media have never brought up this salient point.

But to hope that there is any vestigial belief in the “rule of law” left in Washington is surely spitting into the wind.

Politics rules all.

  Update!

Well, what do you know.

From CNBC:

Chrysler Sale to Fiat-Led Group Is Delayed by Supreme Court

8 Jun 2009

A US Supreme Court justice granted Monday a request to put on hold the sale of bankrupt automaker Chrysler to a group led by Italian carmaker Fiat.

Supreme Court Justice Ruth Bader Ginsburg, in a one-sentence order, said the orders of the bankruptcy judge allowing the sale "are stayed pending further order of the undersigned or of the court."

Ginsburg acted as a 4 p.m. deadline from a U.S. appeals court in New York was due to expire…

It was not clear if Ginsburg’s order was designed to give the high court more time to consider the dispute.

Her order made no mention of when briefs in the appeal would have to be filed or whether the Supreme Court would hear the underlying legal challenge to the sale…

The Obama administration, earlier on Monday, urged the Supreme Court to allow the sale, saying that blocking the deal would have "grave consequences." Solicitor General Elena Kagan of the U.S. Justice Department, the administration’s lawyer before the high court, said in a written argument that blocking the sale could force Chrysler’s liquidation…

The Chrysler case could set a precedent for General Motors , which is using a similar quick-sale strategy in its bankruptcy in New York.

Of course, as the article notes, this does not mean that the Supreme Court will hear the legal challenge.

But it’s a start.

This article was posted by Steve on Sunday, June 7th, 2009. Comments are currently closed.

13 Responses to “Supreme Crt Stays Chrysler Sale – Update”

  1. MinnesotaRush says:

    GOD BLESS THESE FOLKS!!!

    Finally .. somebody threw a road block (or at least a speed bump) into this purposeful mangling of the “rule of law” by the o-blah-blah gang!

    I’m convinced that many to most folks simply are not “engaging” with all this stuff that’s going on and even considering the short, mid, and long term rammifications – for whatever reasons. They may not understand it, they may not want to understand it or get involved, and/or they simply don’t care.

    These two paragraphs are HUGE and very revealing of the problem(s) and illustrative of the dangerous nature of allowing these things to go on.

    “The pension funds, which hold about $42 million of Chrysler’s $6.9 billion in secured loans, have argued the sale unlawfully rewarded unsecured creditors such as the union ahead of secured lenders and that Chrysler was pursuing an illegal reorganization plan through a sham sale.”
    “The public is watching and needs to see that, particularly, when the system is under stress, the rule of law will be honored and an independent judiciary will properly scrutinize the actions of the massively powerful executive branch,” the lawyers said.”

    This .. is a turning point action .. a defining point moment.

    If this request gets glossed over or brushed aside, it will strongly suggest/indicate (you pick) that the executive branch is now capable and willing to ignore and circumvent the other 2 branches of our government. That .. equates to the evolution of our government into a dictatorship. Chicago thug politics.

    These folks have a very legitimate request for the Court. This needs to be watched closely and supported. We may have come to another potential tripwire in this malay that is o-blah-blah and his administration.

    • jobeth says:

      Well said!!!! I’m truly praying about this.

    • proreason says:

      You’re right MR.

      This will be a defining moment.

      We know Roberts, Thomas, Scalia and Alito are solid.

      Is there just one of the libwit SCOTUS’s who believes in the constitution and the rule of law…..and not The Moron’s lib-service rule of law.

      The knee-breakers will be out in force on this one. No unaccompanied jogging please for the distinguished 9.

    • TwilightZoned says:

      “Ginsburg could act on her own or could refer the matter to the full court. A stay from the full court would require the votes of five of the nine Supreme Court members.”

      And this is THE key. If she acts on her own…my gut tells me this is dead in the water. Referring it to the full court would most likely provide a win and she knows it. The irony is if this same situation had happened under a Republican controlled congress Ginsburg likely would have jumped all over this as unlawful. Let’s ALL pray Ginsburg has some ethics. Absolutely, MR, this IS a defining point moment.

    • wardmama4 says:

      But you guys – all your points make the real point – yes Ginsberg (et al) is liberal – but voting against this lawsuit – will make the Supreme Court irrelevant.

      By giving Teleprompter Precedent the power to ignore the _____ (ok, pick one 4th – without due process, 10th States over Federal Government) Constitution/Amendment and of course (hypocrite thy name is Democrat) the ‘Rule of Law’, they would effectively make themselves a moot and extinct institution.

      And they have an out – whether they use Contract Law, the secured debts v unsecured debt or go into the various ways this ‘deal’ violates the Constitution – the Supreme Court can stand with what is Right and win one for We The People.

      Hey, we all knew The One ™ was going to over reach and fall flat on his face – we just didn’t expect it to be this fast.

      I found it particularly noxious as to how even FNC went to the ‘the Indiana pension groups do not want the unsecured debt holders to be paid’ – NOT. The Groups in this lawsuit simply want the ‘Rule’ of Law to be followed and to be paid first.

  2. tranquil.night says:

    Well you have to wonder what some of our intellectual warriors up in the SCOTUS have been thinking as they’ve watched these past six months. Obviously Big O is going to try and marginalize or demonize any opposition, or underscore the necessity of the deal for how many jobs it will save and blahblah. I pray they’ll enact the stay. Little is worse than abandoning the fight for such a core and essential American standard (and alot of people’s investments!), even though we know the government is probably going to win this one for now.

    Nobody I know will engage in politics anymore either, even if they have a general idea of how serious everything is. Even my conservative parents don’t want the details anymore since it will just get them angry. My only real other options is to come home to S&L to pursue the truth!

    • curvyred says:

      Yes, aren’t these the “evil rich people” (school teachers, firefighters and other fund holders) that he already demonized and marginalized. His fan boys and girls ate it up with abandon.

      I really hope this comes to a reasonable outcome and that the SCOTUS follows the letter of the law.

  3. Odie44 says:

    Does anyone think Bambi’s treatment of Isreal has anything to do with Ginsberg’s “inner voice”???

    • TwilightZoned says:

      I would hope Ginsberg has some scruples, but if BHO’s turning his back on Isreal is what it took then so be it. Glenn Beck had Judge Napolitano on tonight discussing this and he suggested the other supreme court judges have been watching this situation carefully and asked to be consulted. Let’s hope he’s correct. If they act, which I believe they will, a precedence will be set putting an end to this type of shenanigans by BHO and his cronies. Hallelujah the Constitution may save us yet!!!

  4. U NO HOO says:

    Appears that Fiat will be elected rather than selected.

  5. canary says:

    I saw this militant commerical, iron fist punching out from the tube, communist themed, power, etc. and low and behold it was a new GM commercial. They said they will only be making and carrying a few models now, all hybrids, built better and will save the world. Phew.

  6. catie says:

    I’m somewhat surprised by this when one thinks about her ruling in the eminent domain case a few years ago. I was also watching Beck yesterday afternoon and saw the Judge’s explanation. I am somewhat hopeful but . . .

  7. BannedbytheTaliban says:

    This may indeed be the tipping point that will turn the tide against Obama. He will either be seceded power by the SCOTUS to circumvent the laws or will have to act in spite of the SCOTUS ruling. However there is precedent for this. During the Jackson administration, the Congress passed the Indian Removal Act that was declared unconstitutional by the Marshall court. Jackson went ahead with the removal, the Trail of Tears, and he said of the ruling “Marshall made the decision, now let him enforce it.”

    Jackson may be the only prior POTUS with as much ego as Obama, but even he falls short. These are interesting times in which we live. America will never be the same after this administration. Hopefully the people will pull their heads out of Obama’s butt and wake up before it gets too bad.

    And if he does go over the court ruling, IMPEACH!


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