More Obama/Government strongarming at it’s finest….
The latest on the Chrysler “deal”. Unbelievable….
I’m not that the financial wizard but looks like senior creditors got screwed versus more junior creditors…All in the name of the big bad evil “hedge funds, and wall street”…Main street loves this. “Good versus evil” this administration has portrayed.
I’m just finding this administration bending rules and stepping all over the place. Is this administration really better than the previous???
NEW YORK (AP) — The group of dissident Chrysler bond holders challenging Chrysler LLC’s government-backed restructuring plans, said Friday that it is dropping its court fight.
The dissolution of the group — at least on an official basis — clears away the largest obstacle standing in the way of Chrysler LLC’s plans to sell the bulk of its assets of Italy’s Fiat Group SpA and could pave the way for the quick exit from bankruptcy protection that the automaker and the federal government desire.
Geoffrey Gwin, principal of the Group G Capital Partners LLC hedge funds, said that after weighing the obstacles ahead and along with the opposition they had faced before, the group’s five remaining members realized that they couldn’t mount an effective legal challenge.
But that doesn’t mean that the deal reached before Chrysler’s Chapter 11 filing — which would exchange the automaker’s total of $6.9 billion in secured debt for $2 billion — has the group’s support.
“We’re still opposing this and not signing the consents, but the active fight has been more challenging,” Gwin said.
Thomas Lauria, the group’s lead attorney, said in a statement that the lenders he represented, and others, felt undue pressure from President Barack Obama’s administration to accept the deal.
The group eventually came to the conclusion that there wasn’t enough of them to “withstand the enormous pressure and machinery of the U.S. government,” he said.
In addressing Chrysler’s Chapter 11 filing last week, Obama said the lenders were seeking an “unjustified taxpayer-funded bailout” after Chrysler and his auto task force cleared the company’s other hurdles, including the Fiat deal and a cost-cutting pact that the United Auto Workers ratified last week.
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“As American taxpayers, we appreciate the unprecedented efforts taken by the current administration to stabilize the economy and the auto sector; but as fiduciaries to our investors we take exception to being compelled, as Chrysler senior secured lenders, to unfairly shoulder the burden relative to various junior creditors,” Stairway said…….
