As I’ve repeated ad nauseum, the proper course for Chrysler and GM is to file for Chapter 11 protection. Neither company should have accepted government funds, which merely delayed the inevitable and allowed Hope ‘n Change and his cronies to take over both companies – and give both to the UAW.
For Hope ‘n Change, it’s all about getting even and making the ‘wealthy’ pay for the fact of their wealth. As Dan Henninger pointed out in March, Obama’s budget proposal reflects his totemic obsession: that those who have ‘too much’ have somehow stolen it from others. So now it’s payback time in the style of Juan Peron – or the mob.
Just don’t get in his way, like certain Chrysler bondholders.
These pesky creditors have a first secured position and would fare better than most in a Chapter 11 case. They could expect to be paid in full to the extent of the value of their collateral. But Hope ‘n Change had other plans – that they should take an 80% haircut and convert their debt to a share of equity smaller than the UAW.
These bondholders are primarily pension fund investors. Yet, their representatives have been publicly threatened and vilified by Hope ‘n Change and his minions merely for exercising the fiduciary responsibility with which they’re charged. And now the bankruptcy lawyer representing these investors describes the threats he’s received.
Meet Tom Lauria of White and Case, a good lawyer representing the interests of his clients. Via Instapundit, Island Turtle and Gateway Pundit, here’s a partial transcript of an interview he gave on a Detroit radio talk show:
Lauria: Let me tell you it’s no fun standing on this side of the fence opposing the President of the United States. In fact, let me just say, people have asked me who I represent. That’s a moving target. I can tell you for sure that I represent one less investor today than I represented yesterday. One of my clients was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight. That’s how hard it is to stand on this side of the fence.
Beckman: Was that Perella Weinberg?
Lauria: That was Perella Weinberg.
This is truly disgusting. And here is Mark Levin with audio excepts and commentary.
I’m proud of these bondholders for having the courage to say ‘no’. That’s what all of us must do ultimately.
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{ 1 comment… read it below or add one }
These are interesting articles. Thank you for taking the time to write them.