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.
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.