Posted on 04/30/2009 6:52:34 AM PDT by CedarDave
WASHINGTON (Reuters) - Chrysler LLC will proceed with Chapter 11 bankruptcy protection now that talks with debtholders have broken down, an administration official said on Thursday.
(Excerpt) Read more at reuters.com ...
He wants to beat up on the Bond Holders as being anti-American and show the UAW that he did everything he could for them. Don’t watch at Noon EST unless you have a bag vclose by.
Chrysler LLC will proceed with Chapter 11 bankruptcy protection now that talks with debtholders have broken down, an administration official said on Thursday.
I, for one, welcome Chrysler's new Italian shitbox deathtraps made by meaty, sausage-fingered blue collar picket line walkers overseen by wallet-snatching fancyboys who ride a skateboard to work.
What could go wrong?
Hussein’s fingerprints are all over this. Sure, one could see this happening to the big 3 about 2-3 decades ago. But Obama.....your recent actions have caused this. You share in the responsibility; its on your watch.
Who benefits from filing in NY; the UAW or the bondholders or Chrysler? Here in michigan the attorney general wanted them to file in michigan. I just not sure what it means.
On the other hand, there is no bankruptcy bench or bar in the country that knows the law better. As much as this is for the convenience of the lawyers (who live in NY, NJ and CT), it's probably for the best for the creditors as well.
It is worse than that, Grasshoppah. The hold out bond holders have credit default swaps in place (likely suspect: AIG) so in bankruptcy they get 100 cents on the dollar (rather than the 20 cents on the dollar being offered). Unfortunately, you and I (as American citizens) now own AIG so... guess who pays?
“I was thinking that if the UAW has a large investment in Chrysler that may lessen their incentive to milk the company”
WRONG....
History shows us that in fact the opposite is true. The Employees feel empowered, and start demanding a BIGGER piece of the pie!
United Airlines, South Bend Lathe, Continental Steel, LTV, Wheirton, and others show us that this was going to end BADLY.
Kudos to the bondholders!
Apparently, there is nothing else to do in Washington these days now that Pelosi and Reid are in charge. Plus, this sort of reminds him of the good old days as an unemployed community activist (before his masters gave him millions for the books he didn't write and made him a millionaire Manchurian candidate).
And people called Bush a stupid stooge. He is either a liar or an uninformed puppet.
I'm curious as to why you used the word "either."
My impression is the courts are more creditor-friendly in NY, while they’re probably more union-friendly in MI.
“Obama says he doesn’t want to own these companies”
Bovine Excrement....
There were articles last summer about the Obamunists wanted to FORCE the Auto Companies to accept “Green Change”, and using them as examples of how the new Social Order would work.
OOPS.....
True. However, I can't say I feel sorry for them. They could have made a deal with GM last fall before the bailouts started and ended up with control of the company. They stubornly refused, insisting on 100 cents on the dollar hoping they would be the main beneficiaries of the bailouts, just like the banks' bondholders were the main beneficiaries of TARP.
Now they're finding that the government, instead of bailing them out, is trying to screw them.
That is a good thing. It sends a signal to bondholders everywhere that they can't count on getting bailed out. That will make them much more willing to play ball with distressed companies in need of restructuring in the future before the government gets involved. It will also greatly reduce the moral hazard problems that result when bondholders believe they will get bailed out.
Let's hope they now just say NO to Obama and insist going to bankruptcy court.
Now if only the Obama administration would do something to screw over the bank bondholders who were bailed out by TARP...
glad the bondholders weren’t suckered into a deal with the devil
X10! At least SOMEone has the sense that God gave a goose.
As shareholders, they will get next to nothing. That is what usually happens in a bankruptcy.
—
BINGO.
So much for giving up some of my pie so somebody else can have some. /s Next we will be told it is our job to wash the empty pie plate.
(shakes head)
Good luck selling those in America
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