Posted on 06/14/2009 2:50:59 PM PDT by reaganaut1
Chrysler Group LLC's restructuring is altering the bankruptcy landscape well beyond the auto industry.
Within days of a bankruptcy-court judge's approval of the government's plan to sell Chrysler to Fiat SpA and leave creditors with big losses, a lawyer in the bankruptcy case of the National Hockey League's Phoenix Coyotes invoked Chrysler in trying to push through the speedy sale of the team.
Should the judge approve that move and allow the Coyotes to be sold quickly, as Chrysler was, it could put some creditors out in the cold, leaving the NHL and other investors without the kind of input typically afforded by bankruptcy law.
View Full Image The Phoenix Coyotes Getty Images
The Phoenix Coyotes invoked Chrysler in trying to push a speedy sale. The Phoenix Coyotes The Phoenix Coyotes
Bankruptcy and financial professionals said such scenarios, if successful, could make investors demand higher interest rates on debt amid uncertainty over how they might fare should the firm encounter financial difficulties.
"The concern is that you have thousands of lenders, hedge funds, insurance companies who model their investments on rules and laws," said Stephen Lerner, a lawyer for a committee of Chrysler dealers. "How do these folks make investment decisions when they're faced with bankruptcy courts that appear to disregard the rules?"
To be sure, judges could reject such arguments as a short-term worry that likely will dissipate when the financial crisis ends.
The Obama administration's plan for pushing through Chrysler's restructuring has been criticized by some for going too quickly, which led to an end run around creditors, who got little say in the process. A few creditors objected in court, saying their rights were being denied, but they lost at all levels, including at the Supreme Court.
(Excerpt) Read more at online.wsj.com ...
We all saw it coming.
Next, 0 will wonder why financing is so hard to get.
You just can’t make this stuff up.
Muammar Khadafy of Libya gets 10% of what the creditors lost, as he has owned 10% of Fiat since the mid-seventies. Khadafi may demand more influence at Fiat now that they own Chrysler.
Not to worry, the UNIONS will meet with you and settle your dispute( heressss Jimmmmmmmmmmy Hoffffffffa
Watch this YouTube video. It’s a great explanation about the Chrysler bailout.
http://www.youtube.com/watch?v=f3YPnTwdeto
Sorry about duplicate post.
Link re 10% by Khadafi: http://www.answers.com/topic/fiat-s-p-a-adr
Excerpt: “However, Fiat’s foreign holdings continued to offset its severe troubles on the home front, and the company thrived in the less saturated markets of Eastern Europe, Turkey, and South America. Its largest overseas investment was an US$86 million plant in Brazil, which became operational in 1976. Other foreign ventures included a project with the American Allis Chalmers company, an important manufacturer of earth-moving equipment with units in the United States, Italy, and Brazil, and under an arrangement with Colonel Khadafi in 1976, Libya acquired a 10 percent interest in Fiat. This purchase cost Moammar Khadafi US$415 million, and Fiat shares immediately rocketed on the Milan Exchange. Since Libya paid almost three times the market price, serious questions were raised about Khadafi’s long-term motives. But Fiat had no such qualms; Khadafi’s purchase eased its cash flow at a time when the company earned less than US$200,000 on sales of about US$4 million and had dipped into reserves in order to pay shareholders.”
Hey guys, shut up and take it. You’re whining about how it used to be, when laws had an effect. We got hope and change now. You’ll learn to like it.
Who the hell would buy corporate bonds except at a huge discount with a quick payback?
There is a simple response to these events... Don’t invest in American companies.
The Courts are always right aren’t they?
i.e. Dredd Scott decision.
Solution, invest only in countries that respect the rule of law more than the USA.
i.e. China? Cuba? Russia?
Ironic, isn’t it? But the reality is that the rest of the world is pretty hopeless as well. About your only hope is to invest in high growth nations like Brazil where they can’t really go too far wrong.
Don’t invest in American companies.
.
Yep, unless their green, they’ll be out of favor
Actually, your “duplicate post” told me that the video was probably well worth viewing. Thanks!
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