Looks like the fight is over folks......

Thursday, June 18, 2009

US District Bankrucptcy Judge repeals reorganization plan

This very important article just came out. It's the second article on the link below. The Bankruptcy plan for New Century Financial, at one time the second largest sub prime lender in the U.S., was set aside on appeal. There were two faults but the second was, which has a bearing on the GM Bankruptcy is highlighted below. U.S. District Judge Sue L. Robinson indicated:

"Robinson also determined that the plan didn’t treat all similarly situated creditors equally and thus failed the test proscribing improper discrimination."

It is the same principle the individual Bondholders have been saying all along. The bankruptcy law treats equal creditors in a similar fashion.


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