Sacramento Bankruptcy Attorney discusses Chrysler, Vick and Cram Downs in Bankruptcy
Sacramento Bankruptcy Attorney discusses Chrysler, Vick and Cram Downs in Bankruptcy
Some creditors are balking at Chrysler’s Chapter 11 reorganization plan. They believe they would receive more in a Chapter 7 liquidation plan. In order for Chrysler’s reorganization plan to be approved by the bankruptcy court over the objections of a creditor class, the plan must “crammed down.” Meaning the bankruptcy court will have to tell the impaired classes that have refused to agree to the reorganization plan that they are out of luck. Recently, the Court refused to “cram down” Michael Vick’s reorganization plan because the Court did not believe the plan was feasible, without a guarantee that Vick would be making a high figure salary as a professional football player.
However, Vick didn’t have the backing of the U.S. Government. The Obama administration has proposed to finance Chrysler’s restructuring with $10.5 billion in loans. Canada would contribute $2.4 billion of that loan amount, but the rest would come from the taxpayers’ coffers. In addition to receiving another $10.5 billion in loans, Chrysler would also likely be relieved of its responsibility to repay the $4.0 billion loan previously made by the federal government.
The intent of the plan is to get Chrysler in and out of bankruptcy as quickly as possible. With the continued assistance of the federal government, the Court will likely approve Chrysler’s reorganization plan over the creditors’ objections.
If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
