Case Detail

Indiana State Police Pension Trust v. Chrysler LLC
Earlier this week, the U.S. Supreme Court issued a summary disposition vacating a decision of the U.S. Court of Appeals for the Second Circuit that had threatened to drastically undermine important Chapter 11 protections secured creditors have come to rely on in bankruptcy proceedings. Although ultimately holding that the petitioners were not entitled to relief because the appeal was moot, the Supreme Court vacated the lower court’s ruling, thereby ensuring that the controversial opinion would retain no precedential value going forward. WLF had urged the court to reverse the Second Circuit’s affirmance of the bankruptcy court’s order. In its brief, WLF argued that, by affirming the decision of the bankruptcy court, the appeals court in effect condoned the U.S. Treasury’s redistribution of value in the Chrysler bankruptcy from senior, secured creditors with priority liens to junior, unsecured creditors.
Case Status:
Decision below vacated.
Related Publications:

First In Time, Yet Last in Line: The Deterioration Of Bankruptcy’s Absolute Priority Rule

Whither Creditors’ Rights?

More Information and Downloads:
10/5/2009: Download the Brief
Press Release: Court Urged to Protect Secured Creditors' Rights in Bankruptcy
Litigation Update: High Court Vacates Second Circuit Ruling In Chrysler Bankruptcy Case
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