For Immediate Release – June 9, 2009
Contact: Caitlin Bozell, (703) 683-5004 x 119

Supreme Court Must Uphold Rule of Law,
Halt Political Auto Restructuring

Unprecedented Government Meddling in Business Must Stop

WASHINGTON, D.C. – The administration has pushed forward in restructuring America’s auto companies according to its own rules, leaving taxpayers in the dark about how and why their money is being spent.

Americans for Prosperity President Tim Phillips issued the following statement regarding the restructuring of General Motors and Chrysler:

"With House Democratic leaders challenging the process by which dealerships are being closed and the Supreme Court temporarily blocking the Fiat acquisition, there are finally some speed bumps to slow down the Obama administration's forced restructuring of the automobile industry.

"Hundreds of years of bankruptcy law in this country are being tossed out in favor of an opaque, possibly politically motivated, closed-door process. We don't know to what extent the Obama administration's task force influenced or forced the decisions to close particular plants or dealerships.

"We are witnessing an unprecedented intrusion of government into the private sector, with outright government ownership of major industrial companies. This is a heavy-handed restructuring process that has forced bondholders to take huge losses while less-senior creditors, the unions, were given much better terms. Billions of dollars of taxpayer money have been committed without a vote of Congress and without any meaningful oversight.

"We urge the Supreme Court to step in and stop this process, upholding the rule of law by insisting instead on a genuine bankruptcy free of administration coercion. If the Court fails to intervene, then we urge Congress to step in and ensure that the restructuring proceed through a process that is transparent, consistent with the rule of law, and free of coercion of any stakeholders by the administration."

Americans for Prosperity (AFP) is a nationwide organization of citizen leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. For more information, visit www.americansforprosperity.org

#