The GM Bankruptcy and the Supreme Court

The American Thinker ^ | June 30, 2009 | Beth Eiseman Grey

[Scanian]

Hearings on GM's motion to approve its restructuring plan are set to start today in Manhattan bankruptcy court. The heart of the individual bondholders' objections to the Obama Administration's plan to save GM is that it is a sub rosa and unconstitutional effort to do an end-run around the bankruptcy code and to enrich the coffers of the UAW, a key political ally of President Obama. In vacating its brief stay in the Chrysler case, the Supreme Court refused to address the merits of similar allegations, but limited its order to the facts at hand and arguably left open the possibility for a return trip with GM bondholders.

A few individual GM bondholders make constitutional and statutory claims in objecting to the GM restructuring plan. An unofficial bondholders' committee which purports to represent more than 1,500 individual GM bondholders does not advance the constitutional issues and instead focuses on the plan's violation of the U.S. Bankruptcy Code.

I expect contrarians to argue that the constitutional train has left our union's station, but this is no academic pleasure for me. I'm an attorney and a GM bondholder. I remain unconvinced, despite President Obama's June 1st remarks to the nation and the government's ongoing allegations, that I'm better off with the government bailout than without it. On principle, I oppose the Administration's decision to prop up political allies whose interests are very much at odds with those of the industry and the rest of the country. Hearings on GM's motion to approve its restructuring plan are set to start today in Manhattan bankruptcy court. The heart of the individual bondholders' objections to the Obama Administration's plan to save GM is that it is a sub rosa and unconstitutional effort to do an end-run around the bankruptcy code and to enrich the coffers

[scooby321]

Where are the Roosevelt Court ruling his socialism un constitutional?

[Vaduz]

I remain unconvinced, despite President Obama’s June 1st remarks to the nation and the government’s ongoing allegations, that I’m better off with the government.

[JackOfVA]

Where are the Roosevelt Court ruling his socialism un constitutional?

Schechter Poultry Corp. v. United States, 295 U.S. 495 (1935).

However, the Court soon realized the error of its ways and rolled over for all the later socialist programs.

Jack