WSJ: U.S. Played Rough With Chrysler’s Creditors
Good article explaining the arm twisting going on in the Chrysler deal. I shutter to think how the lending picture will change if all secured creditors are now unsecured. http://online.wsj.com/article/SB124199948894005017.html
Chrysler Holdout Lenders, Nine Funds, Disclosed in Filing
May 7 (Bloomberg) — OppenheimerFunds Inc., Stairway Capital Management LP, Group G Capital Partners LLC and Schultze Asset Management LLC are among fund owners that tipped Chrysler LLC into bankruptcy and seek to stop its sale to Fiat SpA. The Arrow Distressed Securities Fund, Group G Partners LP and Foxhill Opportunity Master Fund LP are also members of the group previously identified only as non-TARP lenders, in reference to the Troubled Assets Relief Program that bailed out some of the banks that support Chrysler’s reorganization, according to court documents filed yesterday.
Chrysler’s bondholders are whining about Obama’s deal. Don’t listen to them.
Chrysler’s bondholders are whining about Obama’s deal. Don’t listen to them.
White House threatens to destroy Chrysler Investor
Below are links that a friend sent me. While I’m not familiar with either “Zero Hedge” or “FineMrespice” the tale told here is amazing. The story is about the head of White & Case’s restructuring group alleging that the Obama administration directly threatened an investor (Read Perella Weinberg?) to force them to drop their fight in the Chrysler bankruptcy.
Alleged quote from our “Car Czar” to Perella Weinberg
Who the fuck do you think you’re dealing with? We’ll have the IRS audit your fund. Every one of your employees. Your investors. Then we will have the Securities and Exchange Commission rip through your books looking for anything and everything.
Faced with these threats the investor backed down taking a settlement much less appealing that what could have possibly been attained through bankruptcy. A government official is dictating terms of how to operate private companies. They are forcing investors to make decisions that do not match with their fiduciary duties to investors. I encourage all of you to please read the following links and make your own decisions on the validity of the claims.
