Posted on 05/08/2009 7:39:20 AM PDT by SonOfDarkSkies
Two of Chrysler's dissident bond holders say they're dropping their opposition to the automaker's proposed restructuring plan.
OppenheimerFunds and Stairway Capital Management say the group opposing the plan just got too small to be effective.
(Excerpt) Read more at google.com ...
I hope someone with standing opposes this move.
The Shareholders are going to sue their asses off.
he is just trying to help the oppressed.//sarc
Why people are not completely outraged by this i beyond me. No difference between this and a gang of hoodlums shaking down a candy store.
If they dropped their complaint because of duress from the Administration, it will come out in the trial and the focus will shift to the Administration.
“”I hope someone with standing opposes this move.”
You mean, someone with the nads, don’t you? “
Someone who has the nads, is willing to go jail or who has the deep pockets to extend any law suits into the next Republican administration, which is coming soon.
Chrysler is privately held.
I completely agree...and I think this whole affair is going to be required to be unraveled.
This matter not only threatens the contract that senior lenders have with borrowers, it also threatens that part of contract law that says that contracts entered into under duress are null and void.
Then make that unit holders of a bond fund.
Oppenheimer however is not. Anyone who holds an Oppenheimer Bond Fund will very soon be a participant in a Class Action suit. Mark my words.
L
From your mouth to God’s ear.
Their families have been threatened by Chicago brand political thugs.
This is what happens in bankruptcy. Bankruptcy law allows for cramdowns, even of secured creditors.
I would think as a investor in Oppenheimer, I would have standing in this. Since they are abrogating their fiduciary responsibility TO ME, I wonder if a class action suit could be filed and include Oppenheimer, Chrysler, Geithner and the O as defendants. Think I’ll give my broker a call.
They dropped their opposition because Judge Gonzales ruled yesterday that Chrysler could begin selling off its assets at auction now (with Fiat/New Chrysler being the only bidder) “in the interest of time.”
That decision effectively eliminates the assets that secured the loans with the Non-TARP lenders leaving them with the possibility of getting far less than the 29 cents on the dollar that Obama originally offered them.
The whole reason they refused Obama in the first place was because they thought that they could do better in bankruptcy court as secured lenders with first priority. With the secured assets being sold off (unconstitutionally & against bankruptcy law), they are forced to accept what he offered or maybe get far less.
This is one of the most egregious acts I have EVER seen.
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