Indiana Treasurer Richard Mourdock temporarily delays Chrysler Bankruptcy case

This will be a tough case because the Obama administration has been able to force so many of the other creditors to go along. The question is whether Mourdock can get the courts to consider the other creditors who went along as a different class of creditors.

Indiana Treasurer Richard Mourdock is getting his day in court, again. His appeal against a ruling allowing the sale of the bankrupt carmaker's assets, filed on behalf of three Indiana state pension funds, has made its way to the U.S. Court of Appeals in New York. Arguments will be heard Friday. . . . .

Mourdock said the funds, as secured creditors, should not be left behind in the bankruptcy process. He argued that the funds shouldn't have to play second fiddle to unsecured creditors, such as the Italian automaker Fiat, which is getting 20% of the New Chrysler, the soon-to-be-formed, post-bankrupt version of the company.

"This is the first time in American history that unsecured creditors have received more value in a bankruptcy than secured creditors," said Mourdock. . . . .