Indiana throwing rocks in a glass house

[TheOne]

Does anyone else find it two-faced for the state of Indiana to argue so passionately for Chrysler liquidation?

Although their argument is couched in the idea that property owner rights are being trampled by the bankruptcy court, the truth is that the pension plans making the noise knowingly bought distressed debt for 43 cents on the dollar, and now are arguing that they should be paid off in full.

Indiana is EMBARASSING themselves, as well as insulting and emperiling the rest of us. Indiana is also the home of the RV industry. Centered around Elk Hart this industry is suffering just like ours. Should we take the approach with RV manufacturers and suppliers of "liquidate and find something else to do"?

The Indiana pension funds bought $100 million dollars of debt. They paid $43 million for it. They have been offered $29 million. Yes it is a loss, but not a devastating loss. Comparatively speaking it isn't even worth mentioning when viewed along side the hit taken by Mom and Pop who own stock in GM, or the Dealers and families who work for terminated dealerships.

Indiana is no different than any other state. The pensions in question are world class. The benefits package is among the best. Do a comparative study between those in Indiana complaining and the very best pension and benefits package of Dealership employees and it becomes very hard to not want to slap these greedy people who want us liquidated so they can remain unscathed..

[jimmuntz]

From my own perspective (what is best for me) I am hoping that the Indiana appeal fails and that we can get past all the bankruptcy issues. The sooner that happens, the better for those dealers who will survive. And when they feel more secure, so will I.

I am, however, sympathtic to those who have had their rights trampled on. I am no expert on the subject, but from my layman's view it looks like the heriarchy of debt that has long been a standard in such proceedings has been turned on its head.

I don't want to find fault with those managing the pension funds. Buying what they thought was superior debt at a reduced price is just good money management- that is, of course, if the law remains static. That might not be the case here.

Another, down the road consideration: Will companies like GM and Chrysler find it harder to sell their debt in the future- even at full price?

Those who invest in bonds/debt do so for the surity of pay out. If you can't trust the value of the debt, I believe there are better and more safe ways to invest your cash.

So - I think the Indiana pension funds are doing just what I would do, if I were in their position. And - I hope they lose, because that helps me the most.

An interesting conundrum

[arnien]

This copy and paste was just on MSN News:

WASHINGTON (Reuters) - A U.S. Supreme Court justice on Monday granted a request to put on hold the sale of bankrupt automaker Chrysler LLC to a group led by Italian carmaker Fiat SpA.

U.S. Supreme Court Justice Ruth Bader Ginsburg, in a one-sentence order, said the orders of the bankruptcy judge allowing the sale "are stayed pending further order of the undersigned or of the court."

[TheOne]

Indiana eat your legal bills!!!