Wednesday, June 3, 2009


As a non-lawyer, I am interested to see the outcome of the Indiana pensions appeal regarding the Bankruptcy Court's approval of the Chrysler/FIAT sale. (See WSJ artictle). The Bankruptcy judge was able to overrule the objections to the sale because it was in the best interest of the estate for the sale to go through. Remember, a bankruptcy court is a court of equity, not a court of law. This gives the Bankruptcy Court a fair amount of leeway. The Appeals Court of the Second District however, is a court of law. I wonder if this will be a meaningful distinction when the Appeals Court hears the oral arguments on Friday.

If the Court temporarily stays the sale to FIAT, FIAT may have the opportunity to walk away. Of course, given the deal that FIAT has received from the US Treasury, why would it ever walk away? As Yogi said, 'It isn't over til it is over.'

Cheers, Mike

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