One has to love karmic payback when it arrives. Though this time it will make every taxpayer pucker their lips as if they just sucked a lemon.
Back when TARP and the US Government was tossing $4billion at Chrysler to keep the derelict company running, a group of secured creditors stood up against the creative reorganization the Treasury Department was forcing on Chrysler. They were dismissed out of hand by the legal system while more junior unsecured creditors, like the UAW, were paid in full. Recently the US Supreme Court ruled on those creditors' suit. The Court upheld the sale of Chrysler to a new company under Fiat aegis but ruled the 2d Circuit ruling that allowed it moot; which erases the precedent of unsecured creditors being paid off before secured creditors.
Which leads us to the latest piece of business news from Chrysler's battle to stay afloat. Now called the Old Carco, the rump company is paying off creditors by selling what assets are left after the forced sale of its more valuable assets to Fiat. The first creditors being serviced are secured creditors in keeping with established bankruptcy law. It seems the $4 billion from the US Treasury is of an unsecured variety, so the taxpayer will not be receiving any payment.
Now tell me again these guys running the Treasury are among the brightest.