[Jake]

Originally Posted by Jake

The heading to this thread is inaccurate. The automakers could've all sought bankruptcy protection, restructured, and continued as going conerns. They didn't need "bailouts" to remain open.

What would not survive the bankruptcy process are the collective bargaining agreements. That is what we're bailing out - UAW contracts the automakers can no longer afford to pay.

I spoke too soon. It appears there are other possible headings to this thread:

Screwing secured creditors and handing the companies to the unions.

The White House intefered in Chrysler's bankruptcy. Legally binding contracts were ignored. The secured creditors were given the message, "Sorry but this is how it is and we really don't care what the law is. We are the law and we can do whatever we want."

Most of the secured creditors caved in to the pressure from the White House, but a few, such as the Indiana State Pension Fund and the Indiana State Teacher's Retirement Fund decided to assert their legal rights and took it all the way to the Supreme Court. Supreme Court Justice Ginsburg ruled that the Supreme Court would not hear the case.

Supreme Court Screws Chrysler Bondholders - ClosureIsaMyth - Open Salon