Chrysler and 1129(b)

So, I just finished my Bankruptcy and Reorganization exam, but tired as I am of bankruptcy, I'm annoyed by all the freeper types ranting about rule of law, not least of which is apparently this guy in the comments here. The relevant statutory provisions are in 11 USC 1129.

Section 1129(a) is a list of 16 bases that any successful reorganization plan has to touch in order to be confirmed. The relevant one is #7:

(7) With respect to each impaired class of claims or interests—

(A) each holder of a claim or interest of such class—

Yes...

(i) has accepted the plan; or

Nope, not here.

(ii) will receive or retain under the plan on account of such claim or interest property of a value, as of the effective date of the plan, that is not less than the amount that such holder would so receive or retain if the debtor were liquidated under chapter 7 of this title on such date; or

Yes, right there. As long as Speculative McRentseekers can't argue that they would receive more from a liquidation, then they lose. Raise your hand if you think that Chrysler, if liquidated, would be worth anything at all. Their factories wouldn't be worth the energy it would take to melt them down and sell them for scrap.

Them's the rules. Speculators who are considering playing games with GM would be well advised to think twice.