Friday, June 5, 2009


Zerohedge is covering the Indiana pension appeals of the Chrysler sale today at 2pm. If you are interested, read this Zerohedge piece and follow the Zerohedge blog for updates.

I agree with Zerohedge that questioning the use of TARP funds to help the auto industry is a non-starter in the current environment. ZH states that the pensions should have presented their own objective liquidation analysis. I think a competing liquidation analysis should have been presented before the Bankruptcy Court ruled on the sale.

But I wonder, what will the Court of Appeals say about the objection based on the assertion that the FIAT sale is in effect a plan of reorganization without going through the plan process? This objection make carry more weight than one might think. It is also perhaps a better issue to bring in front of an appeals court than a competing liquidation analysis. We shall see.

Cheers, Mike

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