“It’s the first time in American history where secured creditors were not treated as secured creditors,” Richard Mourdock, Indiana’s state treasurer said on CNBC shortly after the delay was announced. ““We don’t think the administration can egregiously and arbitrarily throw 150 years of bankruptcy law out the window without process of law.”
The Obama administration, earlier on Monday, urged the Supreme Court to allow the sale, saying that blocking the deal would have “grave consequences.”
He is exactly right. But I don't think that the Court is going to approach this from a Constitutional perspective. They are going to address it under Contract law and Bankruptcy law. If that is the case, then this deal is dead.
The Obama administration, earlier on Monday, urged the Supreme Court to allow the sale, saying that blocking the deal would have “grave consequences.”
Tough!
Maybe they should come up with a solution that does not involve breaking the law.