There, fixed it for you.
Posted on 05/06/2009 9:20:19 AM PDT by mojito
Last Friday, the day after Chrysler filed for bankruptcy, I drove past the company’s headquarters on Interstate 75 in Auburn Hills, Mich.
As I glanced at the pentagram logo I felt myself tearing up a little bit. Anyone who grew up in the Detroit area, as I did, can’t help but be sad to see a once great company fail.
But my sadness turned to anger later when I heard what bankruptcy lawyer Tom Lauria said on a WJR talk show that morning. “One of my clients,” Lauria told host Frank Beckmann, “was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under threat that the full force of the White House press corps would destroy its reputation if it continued to fight.”
Lauria represented one of the bondholder firms, Perella Weinberg, which initially rejected the Obama deal that would give the bondholders about 33 cents on the dollar for their secured debts while giving the United Auto Workers retirees about 50 cents on the dollar for their unsecured debts.
This of course is a violation of one of the basic principles of bankruptcy law, which is that secured creditors — those who lended money only on the contractual promise that if the debt was unpaid they’d get specific property back — get paid off in full before unsecured creditors get anything. Perella Weinberg withdrew its objection to the settlement, but other bondholders did not, which triggered the bankruptcy filing.
After that came a denunciation of the objecting bondholders as “speculators” by Barack Obama in his news conference last Thursday. And then death threats to bondholders from parties unknown.
(Excerpt) Read more at washingtonexaminer.com ...
O-O-BA-MA
GMTA! I posted this same article right after you did.
It’s a goodie.
LOL.. Shades of MaObama
Of course the White House expects Perella Weinberg to be totally irresponsible in regard to its clients' money... now that the White House has demonstrated how to be totally irresponsible with taxpayer money, it expects others to follow its example with client/shareholder money.
Property rights and contract law are both being rapidly gutted by this administration.
There, fixed it for you.
Hitler was lawfully elected...Once.
A really bad economy for the next ten years.
(ACORN enroute now?)
Law Firm Names Members Of Chrysler Non-TARP Lender Group
Last update: 5/6/2009 12:32:47 PM
By Marie Beaudette
Of DOW JONES DAILY BANKRUPTCY REVIEW
The law firm representing a group of lenders trying to block Chrysler LLC’s bankruptcy-sale plan named the nine lenders in court documents Wednesday after the judge handling the auto maker’s Chapter 11 case said they couldn’t keep their identities secret.
Schultze Master Fund Ltd., Schultze Apex Master Fund, Arrow Distressed Securities Fund, Stairway Capital Management II L.P., Group G Partners LP, GGCP Sequoia L.P., Oppenheimer Senior Floating Rate Fund, Oppenheimer Master Loan Fund LLC and Foxhill Opportunity Master Fund LP are the members of the lender group, according to documents filed Wednesday with the U.S. Bankruptcy Court in Manhattan.
The group calls itself the Chrysler non-TARP lenders, a reference to the fact that the banks that agreed to Chrysler’s cash-for-debt swap received loans from the Troubled Asset Relief Program. Those lenders, which hold 90% of the debt, back the proposal.
The lenders were identified by White & Case LLP, the law firm that’s representing them in Chrysler’s bankruptcy case. According to the firm, the nine lenders hold a total of $295 million of Chrysler’s $6.9 billion in senior debt.
The lenders sought to remain anonymous during Chrysler’s Chapter 11 proceedings, claiming their employees were on the receiving end of death threats after the lenders refused to back a debt-restructuring plan for the auto maker.
On Tuesday, Judge Arthur Gonzalez denied the lenders’ request, saying they had provided no evidence supporting their claims about the threats of violence.
The lender group is fighting Chrysler’s proposed debt-restructuring deal and sale. The lenders say the plan, which they call “patently illegal,” favors junior creditors in Chrysler’s capital structure over secured lenders.
The non-TARP lenders lost an early round in the fight to block the Chrysler sale Tuesday when Gonzalez signed off on bidding rules for the sale.
Chrysler’s plan is to sell most of its assets to a new company that will be owned by Fiat, the United Auto Workers union and the U.S. and Canadian governments for $2 billion. The sale plan allows other bidders to make offers for Chrysler’s assets, but the auto maker has said it’s unlikely another buyer would win.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.)
Tom Lauria, stay out of Marcie Park.
I sure hope these fellows have heavy duty personal security.
Obamussolini must cave to the UAW, as they are among the groups that helped him get fraudulent votes.
Those Disgusting Anti-American Secured Creditors
From his recommended reading list, an excerpt of an article from Bloomberg.com:
I feel like I have seen this bad gangster movie before.
In the opening scene, a naive investor buys some bonds, explaining to his staff that they are a sound investment secured by hard assets. Even if the company goes under, the investor explains, bond investors stand to get about 80 percent of their money back.
The next day, a government official calls and offers to buy up the bonds at 33 cents on the dollar, while giving controlling interest in the company to the labor unions. The investor refuses. That night, a man shows up at his home.
“We’re not saying anything bad is going to happen to you,” the tough says, “but the big boss is going to be very disappointed in you if you don’t take the deal. By the way, how’s your little girl? Is she still going to school down on Federal Street?” The investor caves.
The evolution of the Chrysler LLC bankruptcy seemed almost as bad. The Obama administration brokered a deal that gave labor unions a 55 percent equity stake in Chrysler, putting their interests ahead of the secured interests of bondholders.
Goldman Sachs Foreshadowed UAW’s Chrysler Coup: Kevin Hassett
Obama's already established a precedent...where does it end? It can't be good.
Thanks for those links.
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