SCOTUS Vacates Lower Court Ruling in Favor of Obama Bankruptcy Policy
Thursday, December 31, 2009 at 9:31AM by Timothy Birdnow
Here is an interesting story, one that has slipped in under the radar. (1)
When Chrysler was sold to Fiat, a federal judge violated a basic tenant of bankruptcy law by short-changing secured creditors in favor of unsecured creditors - such as the U.S. government and the UAW. This was clearly a politically motivated act, but was upheld by an appeals court as necessary in the current “emergency”. This has made it’s way to the U.S. Supreme Court, which has issued a summary judgement vacating the lower courts ruling.


















