This is a BUSNIESS LAW 201, we are using a book is INTRODUCTION TO BUSINESS LAW 4th EDITION BY BEATTY AND SAMUELSON. please you are not able to use any outside source never ever. please I would love to see each work been sprite each one in a paper.so that I could understand way more. No outside source please read carefully what I have ask for.
Write down a discussion on Chrysler Bankruptcy. Its must be not less than 275. Three paragraph.
Q1:Chrysler Bankruptcy
In 2009 Chrysler went through Chapter 11 bankruptcy. Most secured creditors received 29% of what was owed them and were denied the right to take physical possession of their collateral. The United Auto Workers received over 50% of the stock in the reorganized company–not Chrysler employess with individual priority claims, but the union itself.
How does this result square with the normal priority scheme for the priority of claims in bankruptcy?
If you were a Ford worker, how would you feel now that the union that represents you also has majority ownership in a competitor?
If you were a Chrysler worker, how would you feel now that a single organization is both your union and your management?
If you were thinking of loaning money to a struggling company, how confident would you be that you could protect your investment by taking a security interest in the property you were financing?
Would that affect your decisions on whether to extend credit?
What effect do you think the result of the Chrysler bankruptcy had on the broader economy?.
