re: #1095 avanti

“The government called their bluff”? Do you understand what you’re saying? A group of creditors in a negotiation refused to accept an unfair offer from the government. That’s not an unfair offer from management, or from the union, as in a normal bankruptcy. And when the creditors refused the unfair offer, the government put Chrysler into bankruptcy.

The creditors will get some protection from the bankruptcy court, but the U.S. Treasury can flush them by pouring billions more in “superpriority” financing into Chrysler, financing that will prime (take precedence over) junior creditors if it is permitted.

The junior creditors need a hotshot bankruptcy lawyer with constitutional law experience pronto, and they should file suit fast.