The Supremes did their bit to push along the Chrysler bailout, denying the application for a stay filed by some of the company's secured creditors. Now the planned sale of the company to Fiat can go through and the company can emerge from bankruptcy.
I don't know that much about bankruptcy, but the plan does seem a little radical, inasmuch as it gives -- or at least is said to give -- unsecured creditors a better deal than secured creditors. I don't understand how that can happen. The complaining creditors do seem to have a point.
At the same time, there is one useful indicator of why the Supreme Court might have declined to get involved: the creditors seeking the stay held just $42.5 million of the total of $6.9 billion of Chrysler's secured debt. That's about 2/3 of 1%.
If 99.33% of the secured creditors are satisfied with the plan, there must be something good about it. As I say, I don't know enough bankruptcy law to have a truly informed opinion, but this objective indicator suggests that the plan can't be all that unfair to the secured creditors.
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