I’m not sure it’s anything more than he said in his order at the time of the Chrysler bankruptcy, but the Chrysler bankruptcy judge, now retired, spoke with ABC News.
He reiterated that there was no other funding for Chrysler. It was either the government’s deal or liquidate. Mourdock had no basis for spending $2 million in what looked like a politically motivated legal challenge. Secured creditors got more out of the government deal than they would have out of the only other available deal, liquidation. Mourdock’s challenge, in effect, was demanding that Indiana and secured creditors get less so that auto worker pensions and other unsecured creditors would get nothing.
Anyway, the judge:
[Chrysler] could not have survived without taxpayer money. “The record before the Court was clear that there were no other sources of lending,” said Arthur J. Gonzalez, who served as chief judge of the U.S. bankruptcy court for the Southern District of New York.
. . .
“One thing is clear, without government support in one fashion or another, there were no sources of funding.” Gonzalez, now a law professor at New York University, said Chrysler — then the weakest of the Big 3 automakers — did not have the ability to secure financing on its own and “it was not generating sufficient cash to operate without an outside source of financing.”
. . .
The former chief judge also denied that the speedy bankruptcy hearing somehow prevented private investors from stepping up, pointing out that the government and Chrysler’s creditors had been seeking a solution for 18 months, to no avail.“The notion that the speed of the process may have missed a potential buyer has no basis in the record,” he said.