• May 8th 2009 at 6:31PM
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There was a minority group of some 20 Chrysler lenders that were fighting the repayment arrangements Chrysler was trying to make before Chrysler declared bankruptcy. Led by Oppenheimer and Stairway Capital, they were owed $2.9 billion and didn't feel they were getting all they could. After Chrysler declared bankruptcy the group continued to fight the repayment arrangements, saying they were owed more remuneration as holders of secured debt.

Well, last week was sound and fury, this week it's in with a bang and out with a whimper. After the bankruptcy judged instructed the group to disclose all of its members, around 15 pulled out. They apparently were hedge funds who shun the limelight. That left five debtholders owed $295 million, until Oppenheimer and Stairway pulled out. That left just three parties, a lawyer for whom admitted, "It reached a point where we didn't have a significant enough group, and it wasn't sensible to proceed."

This removes one of the last obstructions to Chrysler's precision bankruptcy and tie-up with Fiat. Now it's on to dealers and suppliers, and that little issue of product line-up.

[Source: Automotive News - Sub. Req.]

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    • 1 Second Ago
      • 6 Years Ago
      I have had enough of this conversation. If you're not willing to seize all the assets of the criminals who have perpetrated this massive crime (bank execs, speculators, hedge funds, short sellers) and change the laws to prevent this from happening again (regulations) you guys have nothing to complain about. The U.S will crumble out of excess just like all the other empires before it. Your government is corrupt, the banking sector is broken and your societies moral fabric (what is right and wrong) has been replaced by every man and woman for themselves. Your countries influence in the world is diminishing as we speak.
      • 6 Years Ago
      socialist, marxist, terrorist of free capitalism = Obama + UAW + Treasury

      There you go Jaredls, just like you wanted.
        • 6 Years Ago
        terrorist belongs to Bush/Cheney the rest will become real close during his term.
      • 6 Years Ago
      I don't understand why the auto industry gets scrutinized publicly while the financial sector gets magnitudes more money seemingly at a whim and get to stay in the shadows.
        • 6 Years Ago
        It's because even thought the banks deserve to fail for their own greed and fault, the simple truth is we really do need them for normal life to go on - credit lines for business, student, auto, home loans and such. The government knows this, so even though its similar to letting a culprit walk free, its got to be done.

        On the other hand, the auto industry is scrutinized because it isn't as easy to see why a particular company is essential to the economy. If Chrysler were to fail, people would lose jobs, and though that hurts - is it worth spending the public's money to prop up the bad choices of execs? Thats the question has to answer.
        It may be unfair, but the simple truth is Citibank failing has much larger repercussions on the country than Chrysler.
        • 6 Years Ago
        Wow people have forgotten the fundamentals.

        Lets see how economies evolve.
        1) Barter of Goods
        2) Invention of Currency to make Barter less cumbersome
        3) Banking & Investment.

        Maybe its just me, but #2 & #3 become pointless without #1. #3 exists as a service to enable #1.

        But obviously the financial industry has become a creature unto itself for now because its lost sight of that fact. That's why it almost went down (or so we were told) 6 months ago with almost no warning. Poof. Gone.

        And say hypothetically if we did get hit with some Great Depression or Worse economic calamity, how do you start over? If all you had was finance and someone else has the manufacture completely, what can you do with a bunch of worthless slips of paper? But, if you have the ability to make goods, the machines and facilities are still there. You just give the resources if you have to and you start making stuff and the economy starts going. If you don't have that, you get to sit on your hands.
        • 6 Years Ago
        It's very simple. The Banks are the Government. You don't line the pockets of every politician with millions of dollars and not expect to be taken care of. The President and Congress have made if very clear that they will not let any large bank go out of business, so there is no reason for the banks to do anything different than they've been doing because they will always be bailed out. The banks have a permanent get out of jail free card and the politicians have a endless supply of campaign money.

        Goldman Sachs=The Fed
        The Fed=Goldman Sachs
      • 6 Years Ago
      Scary to see how the treasury can strong arm private investors to do whatever they please.

      It was very low of the courts to demand the names of all the members who opposed the bankruptcy.

      Sad day in America.
        • 6 Years Ago
        Huh? If they believed in their claims, why weren't they willing to stand up and be counted?
        • 6 Years Ago
        I'm sure they will pass off their loss on the general public. Not a sad day it's just business as usual for Corporate America.
        • 6 Years Ago
        Spoiled brats? These were investment firms that managed many funds- the kind of funds that 401ks invest in- your retirement, your neighbor's retirement, my retirement. They are acting in the best interest of themselves and their customers.

        The purpose of bankruptcy court is to allow an unbiased judge to determine how best to part out the remaining capital so that those who INVESTED in the company may get as much as possible from what is left. Making this a public matter serves no other purpose than to scare the investors with the threat of mob(union) retaliation.

        This is another level of income redistribution- Obama has GIVEN a company to the its own killer, the UAW, while cheating the taxpayers and investors.

        No longer is your money safe to invest in America- the Federal government gets to decide when, where, how it is used.
        • 6 Years Ago
        That's right, keep parroting that line.

        It's always the UAW's fault. That's why Ford's doing so well, that's why GM has a great portfolio of vehicles. I guess the UAW secretly assumed control of Daimler and ordered them to gut Chrysler so they could commit suicide, because after all, the UAW is in the business of putting themselves out of business.
        • 6 Years Ago
        If you really want to oppose in bankrupcy, you have to decline your name. Nothing low about this. This whole episode is shameful. A bunch of spoiled brats hedge funds who did not have the balls to be consequent with their actions.

        This cost a fortune to the taxpayers, but the real goal was to get rid of the bloated dealerships network. So, in essence, they never had any shadow of a chance to win against the US Government.
        • 6 Years Ago
        I agree. The treasury bails out Chrysler and looses a fortune on it and then throws its weight behind failed banks that got bailed out. FIAT in the mean time has not put a dime in, gets a free lunch (more guaranteed money after Chrysler emerges from bankruptcy). All the while the tax payers lose.
        • 6 Years Ago
        And if they were righteous, why did they fade into the shadows?
      • 6 Years Ago
      bitches had their chests puffed out and forced banko then fold like a house of cardfs..
      • 6 Years Ago
      So this is what we've come to. If someone is part of the "evil" investor class they shouldn't be entitled to return on their investments. These lenders all held secured debt, which means under law, they are entitled to recover 100% of their principal before the unsecured lenders get a penny during bankruptcy. Now they're abandoning their positions because they fear for their safety if they push for what they are legally entitled to. The leaders of Oppenheimer funds have already received death threats.

      These people loaned money to Chrysler over the years for things like plant updates and other capital investments. They almost certainly gave Chrysler a better interest rate than they otherwise would have in exchange for securing the debt. It's the same reason you can get a lower interest rate for a car loan than you can get for a personal loan. If you can't pay back the car loan, the lender is entitled to take the car.

      When all is said and done, who's going to be willing to lend money to the new Chrysler if they know this could happen to them?
        • 6 Years Ago
        What you seem to be missing is the fact that the lenders are refusing to stand up to the bankruptcy court and show proof they are actual lenders. Instead they decided to back off their claims. To understand why they backed out I would suggest you look up the meaning of hedge funds. There's a great deal of manipulation involved when it comes to setting up a hedge fund, because they typically avoid banking regulations and keep from the government involvement.

        Now that bankruptcy court is involved the investors don't want show their hand.
      • 6 Years Ago
      So the UAW triumphs and likely gets 100% of its pension covered. All the various teacher pension programs and IRA money represented by those small investors...well, they get to pay for the UAW to keep on trucking.

      Not surprising that no one was willing to risk further verbal attacks on national television from President UAW.

      In one fell swoop, the millions that organized labor raised to promote the Democratic party have been repaid! Can't argue with that. They put in their money and they want their investment to pay off quickly, and it has.
        • 6 Years Ago
        "All the various teacher pension programs and IRA money represented by those small investors"

        Oh. So the poor teachers and retirees didn't want their day in court? U have no idea who is invested in these funds, but people who hide don't sound like a bunch of grannies and ex-cops. Unless of course, its just that the so-called "managers" of these legalized roulette wheels that are the hedge fund industry didn't want their incompetence made public.

        Investing is a gamble and hedges are one of the riskiest bets of all. More likely a bunch of rich guys lost some dough and the funds missed out on their vig. Boo-hoo.
      • 6 Years Ago
      If you don't like the Bankruptcy laws then push for them to be changed. It is federal law that says these creditors get paid first. They don't want their names released because the Obama Administration is making them out to be evil when they are not. They had bus tours of the AIG executives homes if you remember correctly.
      They offered to take 60 Cents on the dollar but Obama wanted them to take 30. Why should they do that when he is going to give the union 100 Cents on the dollar? If you think that at least some of these funds don't represent average people's 401K investments then you are crazy.
        • 6 Years Ago
        Keep in mind that a lot of these investors bought their stakes at huge DISCOUNTS so they are doing OK at 30 or 40 cents on the dollar.

        And for those still in denial, it was all the DEREGULATION/lax oversight pushed by the financial sector which ended up causing this financial meltdown.
      • 6 Years Ago
      UAWmobiles soon to follow. Why was B. Hussein not mentioned in this breezy article?
        • 6 Years Ago
        i want to know who the investor's are .... so i can make sure none of my investment are a part of this.
        • 6 Years Ago
        Will you right wingers ever forget that you guys lost the election in Nov? A large majority of this country rejected your bigoted ideas, so deal with it.

        The article states that the case collapsed as some shadowy hedge funds didn't want their names to become public. I want to hazard a guess that a large majority of these hedge funds were buddy-buddy with GOP.

        B. Hussein, eh? I'm tired of you republicans practicing this wink-wink, nudge-nudge bigotry. Be a man and say what is in your heart.
      • 6 Years Ago
      I think it's about time! this should shorten the hedge funds! Workers took a cut, now is the time for the big wigs to be hit!
      Just a reminder here like mentioned earlier in this post, If the auto industry fails from the so called big 3. It will be a long depression! For every 1 autoworker, there is 7 spin-off jobs!
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