Posted on 04/30/2009 8:55:39 AM PDT by St. Louis Conservative
By Stephen Grocer The Obama administration on Wednesday failed to convince all of Chrysler’s lenders to agree to a debt-reduction deal. The administration’s auto task force tried to get all 46 of Chrysler’s secured lenders to agree to a debt-reduction deal. But talks broke down, with a large number of the funds voting no. Now President Obama is expected to announce that Chrysler is going to seek reorganization in bankruptcy court. Here is the letter from the from non-TARP lenders to Chrysler explaining their decision to vote no.
April 30, 2009 — As of last night’s deadline, we were part of a group of approximately 20 relatively small organizations; we represent many of the country’s teachers unions, major pension and retirement plans and school endowments who have invested through us in senior secured loans to Chrysler. Combined, these loans total about $1 billion. None of us have taken a dime in TARP money.
As much as anyone, we want to see Chrysler emerge from its current situation as a viable American company, and we are committed to doing what we can to help. Indeed, we have made significant concessions toward this end — although we have been systematically precluded from engaging in direct discussions or negotiations with the government; instead, we have been forced to communicate through an obviously conflicted intermediary: a group of banks that have received billions of TARP funds.
(Excerpt) Read more at blogs.wsj.com ...
Good for the bondholders ...
Join the club, we've got jackets.
And what is the Constitutional authority to do this takeover of industry? Might I suggest bondholders sue?
What puzzles me is that all courtrooms east of the Rocky Mountains are not booked for months in advance to handle law suits against this thievery.
Shouldn’t the CEO of Chrysler be making the announcement of their bankruptcy filing? Certainly not Zero.
The world is turning upside down.
“What puzzles me is that all courtrooms east of the Rocky Mountains are not booked for months in advance to handle law suits against this thievery.”
Probably some will occur but I agree ... I’d be suing the asses off everyone involved.
Chrysler, what in the heck did you expect from King Obama. He screwed you just like he is screwing America. This nitwit is pure communists corrupt garbage and the proof is the incompetent RATS he has in his Administration.
It’s 21st-century fascism, swagga-style.
Lie back and enjoy it.
The hedge fund guys aren’t as stupid as Ken Lewis, deposed chairman of Bank of America, who let Paulsen and Bernanke talk him into taking on the fraudulent Merrill Lynch “in the national interest.” That certainly worked out well for BAC, didn’t it?
You answer your own question. The neosocialist druggie in our White House is the de facto CEO of Chrysler.
The list,ping
Don’t feel all alone, he along with this corrupt team and the corrupt elected officials in Washington, are screwing the entire American people.
There may be a few more tea parties once the public figures out they will be paying for UAW retirees $3200 / month and platinum benefits.
I wonder if the bankruptcy will wind up before the Supreme Court with all the screwing that Obama is doing?
This should have been something for the bankcruptcy court to handle. But Bush was foolishly persuaded to step in and start down this road, and now the big-spending Obama is in charge.
Why would any sane bondholder take less than 100% when they have sat their and watched everyone else get bailed out by the gubbermint on the taxpayer’s dime?
And that idiot Obama stepped right up to the cameras as if HE was the bankruptcy court. So, to switch metaphors, the ball is in his court now.
The UAW will own a controlling interest in the car companies. My bet is that the democrats will pass laws to force (card check) the UAW on the foreign car companies and put the same costs on them. In the end, we the consumer will be paying for all of it and our money will be going indirectly through the UAW to the democrats.
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