Thursday, June 4, 2009

In Preparation For The Chrysler Appelate Hearing

The three briefs filed with the Second Circuit are provided below. Reminder: the appeals hearing will be tomorrow at 2:00pm at the Appelate court at 500 Pearl Street. If the hearing does not result in an outright rejection of the appeal, this could have historic precedent as it unlocks a chain of events which would i) delay the Chrysler bankruptcy indefinitely, ii) give Fiat a free "out", and as has been rumored, without getting Opel, the motivation for the Italians to consummate the deal is materially lower, iii) have a material adverse impact on the outcome of the accelerated GM case. Even if the 2nd Circuit sides with the Debtor/USA, it is still feasible that White & Case will seek overtures to the Supreme Court. In other words, all unemployed and bored readers would be well advised to check out the action at the Second Circuit (no entrance fee).

Also, a cursory look at the filings indicates that the Indiana Pensioners will likely have an uphill climb as their two main points are demonstrably subjective i) whether the 363 sale was sub rosa plan, and ii) whether the US is allowed to use TARP funding for auto bailouts. Granted, some degrees of freedom in both, but what likely could have produced more bankable results would have been a valuation fight, where Lauria could have brought in an expert to opine as to the value of a liquidated Chrysler, and state (objectively) that this value is significantly higher than that presented by Capstone's highly discredited banker Robert Manzo. Arguing against the good faith preparation of his report, together with a justified higher valuation liquidation analysis would have potentially given the Judge much less subjective leeway.

But who knows, stranger things have happened.

The main briefs presented:



United States:

Sphere: Related Content
Print this post
blog comments powered by Disqus