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Saturday, September 12, 2009
Ind. Gov't - Still more on: "Petitions U.S. Supreme Court, Seeks Equitable Compensation for Indiana Funds Affected by Chrysler, LLC Bankruptcy"
Updating this ILB entry from Sept. 6th, Lyle Denniston of SCOTUSBlog has this long entry today on the new petition to the Supreme Court filed by the State of Indiana in the Chrysler case. A quote:
The legal issue at the center of the case is the power of a bankruptcy court to allow a failing company to sell all of its assets while its case is in court, without going through the reorganization process that protects creditors. That issue arises under a section of Chapter 11 (section 363) that permits a banrkuptcy trustee to make a quick sale of the firm’s property before final arrangements are made to reorganize the firm to keep it alive. The Indiana trust funds argued that this was used in the Chrysler case to accomplish an “end-around” Chapter 11. “On its face,” the petition asserted, “this deal smacks of the sort of insider favoritism that the Bankruptcy C ode was designed to prevent.”
Posted by Marcia Oddi on September 12, 2009 01:09 PM
Posted to Indiana Government