NY judge set to rule on case that could reverse the auto bailout?
A New York federal judge may rule imminently on a case that could reverse the General Motors (GM) bailout and send the company back into bankruptcy, according to sources close to the case.
At issue is a backroom deal hatched by GM to fulfill the Obama administration’s demand for a quick bankruptcy, draining the automaker of nearly all of its cash on hand and leaving it in worse shape than it was when it collapsed in 2009.
One condition of GM’s bailout was to shore up its overseas subsidiaries. On the eve of entering bankruptcy, the company cut a $367 million “lock-up agreement” with several major hedge funds to prevent GM Canada from failing. The agreement ensured that GM could spin-off its liabilities to “old GM,” while using a multi-billion dollar bailout to create a new company.
Blowback
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Better late than never. The law is the law – Obama take note!
OldEnglish on December 6, 2012 at 6:31 PM
More Fool’s Gold.
I am sick of these stories about things that “could happen”. They get my hopes up, only to be shot down. After Jeffrey Toobin’s meltdown at teh Obamacare Case in the US Supreme Court, I don’t believe anymore “could happen” stories.
As far as I am concerned, if it hasn’t happened, it won’t.
Blaise on December 6, 2012 at 6:31 PM
Speaking of “Let It Burn”….
BigWyo on December 6, 2012 at 6:31 PM
Alternated headline: NY Judge set to go house shopping in the Hamptons.
BigWyo on December 6, 2012 at 6:33 PM
This is interesting but regardless of the ruling won’t it be appealed and be in court for a million years?
Cindy Munford on December 6, 2012 at 6:34 PM
And I thought the Delphi pension fund case was going to unravel the “bankruptcy” first.
Too bad this won’t help all the little GM dealerships that were closed because the owners didn’t have the right connections.
Wethal on December 6, 2012 at 6:34 PM
Because Obama said so.
Schadenfreude on December 6, 2012 at 6:37 PM
… or were white-owned.
slickwillie2001 on December 6, 2012 at 6:39 PM
Issa still wants a piece of Turbo-tax Timmy regarding the GM bailout and Delphi’s pensions.
antipc on December 6, 2012 at 6:39 PM
LOL ROTFLOL
HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH, HAH.
Sorry, but that is just funny these days. It would be like Rome claiming to be the premier world power today. Maybe long long ago this was the case, today…
astonerii on December 6, 2012 at 6:41 PM
While I agree with you on the situation today, I am mindful of that old truism – the pendulum, she do swing.
Either way, accepting lawlessness is not my thing.
OldEnglish on December 6, 2012 at 6:49 PM
Yes, there would be likely appeals, but if the hedge funds and GM really did this backroom deal and withheld it from the judge to get his approval, that is serious and hard to justify on appeal.
There are provisions in the code of ethics on “candor to the tribunal,” that is, don’t lie to a judge.
Wethal on December 6, 2012 at 6:50 PM
Going to have to go there though if we are to ever have a reversal back.
astonerii on December 6, 2012 at 6:51 PM
Didn’t the bailout already mistreat a lot of creditors and dealership owners? I guess some are more important than others.
Cindy Munford on December 6, 2012 at 6:53 PM
True – we are there. Now to get back.
OldEnglish on December 6, 2012 at 6:53 PM
Lie only to the taxpayers.
Cindy Munford on December 6, 2012 at 6:54 PM
That anti-Midus touch…
Count to 10 on December 6, 2012 at 7:01 PM
Dang! Next we’ll find out Osama is still alive!
Wander on December 6, 2012 at 7:15 PM
we are only 10% of the way there. But we are in luck, while it took 80 years before the government broke the first boundaries when it attacked the Confederacy, it then took another 30 years before the government made its next power grab with constitutional amendments for income taxes and popular vote for senators. Then 20 years for the next assault on liberty with FDR. Ever since it has been an ever decreasing period of time between assaults on our freedom. So, the luck is that it will only take about 4 to 8 years before it finishes off that last 90%.
astonerii on December 6, 2012 at 7:27 PM
On specifics, yes. On attitude, before the ink was dry on the Constitution. We have got to revert attitude to the days when a man’s word was his bond. (Yeah, I know …)
OldEnglish on December 6, 2012 at 7:34 PM
Oh, and if pigs develop wings, rudders and jet engines, they could fly….
Marxism is for dummies on December 6, 2012 at 8:09 PM