- #211
mheslep
Gold Member
- 364
- 729
Not exactly. The federal government acted without regard to existing bankruptcy laws and the SCOTUS declined to attempt to stop it.mr166 said:Historically in a bankruptcy the bondholders are first on line to receive payment while others come last. This did not happen in the GM bankruptcy. The courts rewrote case law to allow the government to take it over without proper remuneration to the bondholders . So in reality, the government stole GM from the bondholders and then sold it debt free or with greatly reduced debt to the shareholders.