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View Diary: A Bankruptcy Lawyer (Me), Corrects Factcheck.Org On the Auto-Bailout (Updated, re Private Funding.) (157 comments)

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  •  Another source of confusion - that GM bondholders (1+ / 0-)
    Recommended by:
    Upper West

    were passed over in the capital hiearchy.   The right claims Obama instructed the court to stiff senior debtholders in favor of the UAW.

    The way I understand it courts have long followed the Critical Vendor Clause that allows unsecured debt to be placed in front of secured debt if the vendor (or labor) is "critical" to the restructuring.

    "The way to see by faith is to shut the eye of reason." - Thomas Paine

    by shrike on Thu Oct 25, 2012 at 07:10:48 PM PDT

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