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Old 05-06-2009, 01:33 PM   #19
Indocti Discant
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Originally Posted by matt30 View Post
I don't know where you getting this idea that the court is cart blanc running over creditors to appease the Obama administration when the court doesn't even hear arguments until the 21st. The only decision the court has made so far is for a 4 billion bridge loan while this process goes through.

And as far priority is concerned, it's usually the case that secured creditors are first. But things get more complicated when you introduce government money. I don't know if you're a lawyer but read 11 USC 500. And the creditors hadn't had a problem until a couple days ago, so this is all relatively new.

The approval of the sale to Fiat is going against their objections. (while the court hasnt really done anything that is technically in the wrong here it is skating on the edge of shadiness, i.e. w/o super majority (as should apply here) approval). Super majority is 51% of lenders + 51% of total principal.

Creditors had a problem quite a while back (1-2 months ago, i know people on the committee), it just became public.

Obviously things get more complicated when you introduce govt money.

To help me out here, could you point me to what part of USC 500 applies to this case (i.e. the injection of govt money)?
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