Posted on 02/08/2010 3:52:56 PM PST by Danae
Friday Feb 5th, Judge Gonzalez of the Bankruptcy Court of the Southern District of New York, in the Chrysler Bankruptcy case denied a Motion brought on behalf of over 70 of the former Chrysler Dealers to overturn the Rejection Order which stripped them of their franchises in the spring of 2009.
Led by Island Jeep’s James Anderer of New York, the dealers Motion would have reversed the decision which stripped 789 dealers, including Timberline Chrysler Dodge of Portland Or., of their franchise contracts during the bankruptcy and sale of Chrysler to Fiat. Anderer's argument rests primarily upon the fact that neither Fiat nor any other party to the sale of Chrysler, requested that the Chrysler Dealers lose their contracts. Fiat was given 20 Billion dollars by the US Federal Government out of TARP funds in order to finance the purchase, and indeed paid nothing for their new ownership of one of Americas biggest auto manufacturers.
During the Bankruptcy trial, Fiat executive Alfredo Altavilla testified directly that no restructuring of the dealership agreements needed to occur before the closing of the sale:
Q. If this transaction closes without an absolute requirement of a particular number of dealers that are being terminated, would Chrysler still go through with this deal — I mean, rather, would Fiat still go through with this deal?
A. The answer is that a restructure needs to occur. Whether it occurs before or after the closing of the deal is not a material difference.
(Excerpt) Read more at examiner.com ...
If this stands, then Americans have no reason to trust the judicial system any longer.
A Fuster Cluck Grande.
See slimy Judge Carter in CA. The judiciary is totally corrupt. A few in SCOTUS are still decent.
How about those GM bond holders who got wiped out ?
Donofrio ping!
That or the judge is punting. The whole thing makes me shake my head, I never thought I would see something like what happened last spring to the Chrysler dealers, ever happen in the USA.
Has the 0bama administration made bond holders unsecured creditors?
I would venture a guess that before the dust settles that GM bond holders will take it to the Supreme Court.
Who would dare to buy any bond in light of the actions of the POS.
I don’t know if the secured bond holders have appealed. I know that these unsecured ones have.
What was the judge thinking in creating a billion dollar liability?
I don’t have GM bonds but my builder (guy who built my house) does. He’s wiped out.
Like the Chrysler dealers, I hope he prevails...
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