Payback Part 1

Court adds uncertainty to Chrysler reorganization

By BREE FOWLER, AP Auto Writer

NEW YORK – Chrysler's five weeks of breakneck-speed bankruptcy proceedings came to a screeching — but possibly temporary — halt Monday, when a Supreme Court justice delayed its sale of assets to Italy's Fiat.
His Presidency, with His Car Czar has pushed this deal. It really surprises me that it is Justice Ginsburg, possibly the most progressive on the Court, that is putting a stay on the sale of Chrysler to Fiat.

Despite the aggressive objections of a trio of Indiana state pension and construction funds that own a small part of Chrysler's secured debt, the automaker has moved swiftly through the Chapter 11 process.
The key word here is secured debt. Secured debt has priority over unsecured. It always had. And when they say the automaker has moved swiftly...that's at the behest of His Presidency.

Chrysler's ability to speed through the process has partially been a result of the involvement of the Obama administration's auto task force, which provided $4.5 billion in bankruptcy financing and helped negotiate a deal between the company's stakeholders.
The article eventually says where that $4.5 billion comes from...TARP (bank bailout money)?. Does this smell fishy?

The United Auto Workers union will get a 55 percent stake that will be used to fund its retiree health care obligations, while the U.S. and Canadian governments will receive a combined 10 percent stake.
Ah, this is the rub. SO, His Presidency is just fulfilling his promise to Joe the Plumber. He is spreading the wealth, no... he's returning the wealth to what he perceives as the rigthful owner...or just a political payback for the UAW.

Meanwhile, the automaker's secured debtholders would get $2 billion in cash, or about 29 cents on the dollar, for their combined $6.9 billion in debt. Some of the debtholders balked at the deal, saying as secured lenders they deserved more.
They do deserve more. And the 29 cents on the dollar His Administration is forcing, while the UAW gets the majority stakes in the company after restructuring...is socialism...no it's despotism, maybe Hugo Chavezesque.

The funds also are challenging the constitutionality of the Treasury Department's use of money from the Troubled Asset Relief Program to supply Chrysler's bankruptcy protection financing. They say the government did so without congressional authority.
This is crazy...we thought this money was for the banks to open up credit?

In summary:
His Administration might have illegally spent money meant for the banks on Chrysler, forced them to sell out to Fiat, while selling out take priority away from the rightful debtors and give his lobbyists and financial backers...UAW, a payback; there I said it again.

Payback from Obama...to be continued....