Obama Sets Out To Bully The Supreme Court On Chrysler Ruling

Proof • June 10, 2009

The Supreme Court has put a hold on the Obama-orchestrated Chrysler deal until an appeal by some of the company’s bondholders is sorted out. And how does the Obama administration react to that? By announcing that Chrysler will go out of business next week if the SCOTUS doesn’t dismiss the case.

The US government and Fiat have warned that Chrysler could go out of business as soon as next week if the Supreme Court does not quickly reject an attempt by three Indiana pension funds to block the bankrupt carmaker’s restructuring.
The warnings are contained in filings submitted in the wake of the court’s decision on Monday to delay an alliance between Fiat and a “new” Chrysler while the judges consider whether to hear the pension funds’ case.
The funds, which hold $42m of Chrysler’s $6.9bn in secured debt, contend that an offer to pay them 29 cents on the dollar violates their creditor rights. A United Auto Workers union healthcare trust – a more junior, unsecured creditor – would receive far more favourable treatment under the restructuring, including a 55 per cent equity stake.

Got that, Supreme Court? You’d better act, and act the right way, or Chrysler’s closing will be on your head. Because Obama says so.
I’m not informed enough to really comment on the legal issues of this case, but anyone thinking that it’s just for the UAW and its unsecured interest in Chrysler to get a majority stake in the country while pension funds with secured investments in Chrysler get the short end of the stick is fooling themselves.
How Obama can get away with pushing such a shamelessly biased deal that’s so obviously tilted to the benefit of his political supporters at the UAW is beyond me. This whole thing stinks of Chicago-style politics.

Tags: Asshats, Domestic Issues, Politics

http://Array Bodhi

If the Supreme Court bows to this nonsense from the Whitehouse, then we know all hope is lost.
Lioncourt

I’m not informed enough to really comment on the legal issues of this case

But some how that doesn’t stop you.

He doesn’t have to bully SCOTUS. He is right on the law. Te vast majority of creditors accepted. It doesn’t require universal acceptance.

If Chrysler goes to liquidation the estimate is that creditors would get 20 cents on the dollar. They were offered 30 and took it.
Houston

Lioncourt,

No problem there if everything in the deal is on the up and up, then the Supreme Court will rule so. If not, then it will be corrected.

My concern is with the “Oh lordy everything is going to collapse if you question me” attitude.

I call bull.
bill-tb

I bet Roberts really cares …
brain trust

In the eyes of our dictator – the courts have no business looking at contract law – the law that governs financial obligations. Wow! I believe that the court movement today dealt with the closing of dealerships(another BHO dictate) and not with the rights of 1st creditors.

Can we all say sieg hiel mien dictator! How blind is the drive-by media?
http://ndgoon.blogspot.com/ goon

This is bad news.
http://animal-farm.us/ Foxwood

Our Constitutional right are being ignored, but the sad truth is, we don’t know it. We don’t know our rights, and some just don’t care. That is why we are where we are.
http://animal-farm.us/change/all-hail-king-obama-460
Michael Moon

SCOTUS was right, TOTUS is wrong.

The world won’t end if the supremes review how the proposed deal illegally transfers wealth away from bondholders, including pension funds (think “grandma”). It won’t end if they force sanity back into the process. The important things, the sharp end of any bankruptcy, is what happens to the physical assets. Trust me, auto plants, stamping tools, assembly lines, and inventory won’t disappear in a puff of smoke. They need to be secured pending a just assignment of the assets to all debtors. What TOTUS has on the table is neither just nor legal.
Bat One

Its interesting that neither the White House, nor the Solicitor General are arguing very strenuously that the Obama administration has the legislative authority that the bondholder plaintiffs say they don’t have. Instead they recite all manner of dire consequences if the court doesn’t rule in their favor. Rather than arguing the legal and constitutional points, Obama all but concedes those, and argues instead that the end justifies the means.
http://www.willisms.com/ Zsa Zsa

Obama is such a great Dictator.
sayanything-4625

Hey Lion,

I wasn’t aware there was a majority rule clause for contracts. I was given to understand we in American jurisprudence we protected the individual. Since when did “majority rule” overturn a contract?
http://sayanythingblog.com/readers/author/realitybasedbob/ realitybasedbob

OMG OMG OMG

Like it’s like a lawyer or something going in front of a judge to argue like their case is all correct and stuff!
Like we’re right and the other dude is wrong.

How can this happen in Amerca?
It’s like Socialistical Fascistias or something, right Rush? Right?

I mean like who ever heard of someone like telling a judge what they think was right?
Next thing ya know like everybody can go to a judge and want the judge to do what they want and the opposite side too also.

And of course it was the libral judge woman who put the hold on the case and everything. Typical.

And oh yeah, like they just did something like they think they are the final word or something.

Like what they say is all supreme and stuff.
bill-tb

Hah stuffed by the SC … game on. SC wants in.
sayanything-4625

Bat,

When you can’t win on the merits you change the rules. I’m wondering, kinda of like Suite, what will happen if they rule against him. I kinda see a situation like the outcome of Marberry v Madison where Obama say’s, “the Supreme Court has issued its ruling, now lets see them enforce it” and move on like nothing happened. I wonder how people will react?
Mickey

Imam Husain Obama continues to overreach. Chrysler is his albatros. Ya gotta love it.
ProudinNC

Well, they dropped it late this afternoon.

Asshats.
docdave

That’s the same oh god oh god stuff he pulled on the stimulus package. Here’s hoping the court sees through that facade.
http://suitepotato.blogspot.com/ sayanything-4808

I think the supremes issuing an injunction against any such shutdown is entirely legal and proper and should be done.

Let the White House whine. The judicial branch is entirely within their constitutional powers here.

UNLIKE OBAMA.

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Obama Sets Out To Bully The Supreme Court On Chrysler Ruling

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