Compensation fund created in Peanut Corp bankruptcy but not in Chrysler bankruptcy

As part of the bankruptcy proceedings for Peanut Corporation of America, which processed and distributed millions of pounds of contaminated peanuts, peanut butter and peanut paste that sickened people throughout the United States with salmonella poisoning, a federal judge has issued an order calling for the creation of a $12 million fund from insurance proceeds to compensate victims. For the full story go here. In reponse to this news item, the PopTort has published a comment here lamenting how Chrysler, GM, numerous pundits and even the Obama administration argued not too long ago that wiping out the rights of those injured by those companies’ faulty products before they emerged from bankruptcy was unavoidable and/or simply par for the course in any bankruptcy proceeding.