[Candor7]

Well, you may be right about the judges ruling , but then again, there is a reason Obama wants a done deal before he goes in. Bond holders are secured debtors, and they may want a stake inn control of Chrysler in exchange for their deminished returns.

Thats the real issue.Obama wants them gone, so thet the Unions don't have to deal with them. Its "class warfare against the wealthy." And you can guess who I am cheering for.

[JasonC]

The reason the treasury wants them to take the same payout as the banks and be done with it, is to get the company through all of this as rapidly as possible. The supplier network is dying. It needs a new operating entity paying into it as soon as possible. It is objectively better for all stakeholders combined and for the overall economy. The bondholders particular sectional interest is, as usual, shrinking the whole value trying to grab a marginally thicker slice for themselves, which is exactly what is inefficient about courts compared to straightforward deal making.