Posted on 05/05/2009 3:18:06 PM PDT by jimbo123
They have been vilified on message boards and called greedy speculators, criminals and vultures. President Obama says he "does not stand with them." They have received death threats. They're the hedge funds opposed to the Chrysler reorganization, who desperately tried to keep their identities secret to all but the federal bankruptcy court judge overseeing the case.
But the judge, Arthur Gonzalez, isn't buying it. Tuesday, he ruled that the group had until 10 a.m. Wednesday to reveal their identities. The group, which describes itself as the group of creditors that did not have to take federal bailout money under the Troubled Asset Relief program, is trying to block the Obama administration's proposed reorganization of Chrysler.
In court documents Tuesday, attorneys for the so-called "non-TARP" creditors, who own $300 million of secured debt, said intensifying pressure and name calling by the government threatened to harm them if their identities became public.
The Chrysler non-TARP lenders are afraid," the court documents say. They cannot argue against the proposed bankruptcy "if that means being subjected to heavy-handed tactics that will threaten their business and safety."
(Excerpt) Read more at forbes.com ...
“They have received death threats.”
What kind of dumb b____ds would do something like this? This is still a country of laws, to Hell with these thugs!
Most of the “greedy speculators” in NY and CT voted for Obama, too.
I never thought I would see this day in the USA. I was so secure in my naive certainty!
The age of thugocracy has finally arrived at the doors of this most solid, strong, prosperous, country in the history of the world.
I was a union member once. In fact there are quite a few FReepers who are “union thugs”.
ACORN, like the rest of the Left, is an organization of thugs.
What will this do to future private ‘investment’? It’ll dry up pretty fast...
My question is what would possess supposedly smart money men to loan money to Chrysler in the first place? I understand that they thought they would still get paid if it failed, but the whole industry in America has been comatose and on life support for years.
Just curious, does the “secured” part of “secured credit” mean anything to you?
The masses have no leadership. They have no where to go. They have seen that the politicians can and will ignore them. I am afraid that there will only be one recourse available to the people.
Just curious do you understand a hedge firm takes bets, I doubt if they are secured and they know it. They are on the hook for betting Chrysler would pay. If you cannot pay don’t play.
LOL,
And given the facist horsecrap being dished out by Barry & Associates (all in the name of "economic justice"), WHO in their right mind would ever buy another corporate bond or enter into another contract in this environment? The law means nothing; contracts mean nothing to these people.
That pesky "impending doom" feeling just won't go away.
He is over playing his hand, despite the fact that he is right. His loudness and almost teen-like willingness to express an opinion on every issue, especially ones where the law and facts are on his side and silence would be the most effective.
This is evidence that he is naive and not up to the task, although he retains the necessary egomania. His handlers prefer an amateur, a willing amateur.
ANOTHER STORY ABOUT THE JUDGE
http://www.istockanalyst.com/article/viewarticle/articleid/3218324
For Now, Judge Gonzalez Siding With Chrysler Creditors
By: Tyler Durden Tuesday, May 05, 2009 10:21 AM
Sectors: Finance
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In an event that just as easily may not have occurred, Judge Gonzalez presiding over the boiling hot Chrysler bankruptcy, has sided with an objection of the Chrysler Non-TARP creditors (aka abominable hedge funds). The issue at hand was a request for a delay of the hearing on Section 363 bidding procedures from today until tomorrow at 2:30 pm. If Lehman’s bankruptcy is any indication, this is the kind of objection that would have been quickly steamrolled by Judge Peck on his route to bankruptcy Superstardom (the latter has used the words “biggest bankruptcy in history” approximately 240 times to date, according to docket records). Could it be that Gonzalez is actually an adherent to due process and will give both sides in this bankruptcy a fair chance?
Either way, as Zero Hedge speculated yesterday, today’s court hearing was indeed a mini drama after Tom Lauria disclosed to Judge Gonzalez that some Chrysler creditors had received death threats. While the threats have been referred to the FBI, it is obvious why Lauria is set on keeping the identities of the 20 hold outs secret at this point.
Among the other disclosures today was the statement by Robet Manzo of Capstone that not only is the U.S. government not charging interest on the Chrysler DIP but that there is a “low probability” that Chrysler would be able to repay the loan. This means that the UST could lose as much as $8 billion in this bankruptcy, an amount which includes the $4 billion already loaned in January. Also uncovered was the new projection for legal fees associated with the Chapter 11, which has grown from $20 million a week ago to a cool $30 million currently (this is not the last iteration of the number).
Lastly, Corinne Ball of Jones Day had this to say about the situation:
“The survival of Chrysler’s business is at stake in these proceedings, as is the fate of hundreds of suppliers and thousands of Chrysler dealers around the country. Absent immediate action, (Chrysler) will lose the only opportunity available to them to preserve their business as a going concern and to avoid the economic devastation that will occur if Chrysler’s business, and Chrysler’s suppliers and dealers, are forced to shut down.”
These are, almost verbatim, the same words used by Harvey Miller, Lori Fife and Shai Waisman when the Weil Gotshal legal team steamrolled through any and all objections to sell Lehman’s Broker Dealer division a mere 4 days after the bankruptcy filing (and with uber-Judge Peck’s blessings all the way). It is yet to be seen how quickly Gonzalez caves.
FROM ANOTHER HEADLINE........IS THIS IN OUR FUTURE?
“Georgia Says Coup Underway at Military Base”
The basic story here is that these are secured creditors - “first lien” holders - who are unwilling to relinquish their claim in favor of Obama and the union. Hedge funds do take bets - in this case, they took a sucker bet that “first lien” means exactly what it says.
Apparently you have no problem with violating that simple legal precept.
I do, however.
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