Creditors Cry Foul at Chrysler Precedent
Wallstreet Journal
JUNE 13, 2009

Another result of the Obama Motors deal with Chrysler and GM is that now a precedent has been set whereby companies can bypass shareholders and court bankrupcy all together. This deal Obama has created should have been rejected by the Supreme Court on account that it is illegal bypassing the whole body of law and legal remidies regarding bankrupcy, and by letting it stand they have created an entirely new legal precedent that will shellac investers, shareholders, and bondholders.

Chrysler Group LLC's restructuring is altering the bankruptcy landscape well beyond the auto industry.

Within days of a bankruptcy-court judge's approval of the government's plan to sell Chrysler to Fiat SpA and leave creditors with big losses, a lawyer in the bankruptcy case of the National Hockey League's Phoenix Coyotes invoked Chrysler in trying to push through the speedy sale of the team.

Should the judge approve that move and allow the Coyotes to be sold quickly, as Chrysler was, it could put some creditors out in the cold, leaving the NHL and other investors without the kind of input ...