If anyone harbored any illusions with respect to the crushing complexity involved in trying to restructure a firm before during or after bankruptcy, the last several hours should clear that question up nicely:
8:52 am EDT
9:16 am EDT
9:41 am EDT
9:54 am EDT
The time-line betrays a nearly blind, almost naive optimism on someone's part. It is easy to feel sorry for the Administration in the way you pity the little kid who was sure she would be "A Fairy Princess" when she grew up.
Administration Official Says Chrysler to Enter Chapter 11; Obama to Speak at Noon [The Wall Street Journal]
Posted by guest , Apr 30, 2009 10:12AM
If that is real, excellent monitoring. Do you spend all day watching the WSJ news scroll?
Posted by guest , Apr 30, 2009 10:16AM
EP, Bess, you're both beautiful princesses to me! I'll send the sugar plumb fairy over for tea.
Posted by Equity Private , Apr 30, 2009 10:16AM
"Posted by guest, Apr 30, 2009 10:12AM
If that is real, excellent monitoring. Do you spend all day watching the WSJ news scroll?"
No price is to high to pay for Dealbreaker readers.
Posted by guest , Apr 30, 2009 10:20AM
Interesting. They didn't make any reference to Hillary in those articles. Rupert must not be flogging his reporters often enough these days.
Posted by guest , Apr 30, 2009 10:20AM
I think the Administration was hoping for a little Pink Lady anger at the "evil hedge funds" who want to be paid more than 25c for their SECURED debt.
Who would have thought that Obama's Wall St financial backers wouldn't take a 75% haircut so his UAW supporters could recover more?
Is this the first time O has heard "no"?
Posted by guest , Apr 30, 2009 10:22AM
Marvelous
The "Obama favors exit from private sector" hed on the last screen grab almost serves as a punch line.....
Posted by guest , Apr 30, 2009 10:26AM
it's thursday morning and i haven't even had a chance to tuck into my boone's farm sangria yet to be able appreciate this post. couldn't you have withheld this thought until afternoon?
Posted by guest , Apr 30, 2009 10:34AM
@5-- great point! and it looks like he don't take to kindly to it either....
Posted by guest , Apr 30, 2009 10:35AM
Which funds are involved? I know it's supposed to be a secret, but I assume people must have an idea...
Posted by guest , Apr 30, 2009 10:36AM
I thought Joe Biden was the hedge fund czar. Why wasn't he able to control this situation?
Posted by guest , Apr 30, 2009 10:43AM
@9, from the berg, $250mm apart?! how many spins with Airforce One around the Statue of Liberty is that? 10?
" One reason for filing a bankruptcy is to deal with the lenders who turned down administration loan-reduction proposals.
Those 20 investment firms and other lenders, accounting for 30 percent of the loans, include steering committee members OppenheimerFunds Inc., Perella Weinberg Capital Management LP and Stairway Capital Advisors, a person representing the group said, asking not to be identified.
Dissidents Comment
Dan Arbess, a spokesman for New York-based Perella, didn’t return calls for comment. Jack Brown, a spokesman for New York- based Oppenheimer, declined to comment. Stairway spokesman John Rijo said the Uniondale, New York-based fund would be issuing a statement later today.
The dissident group made a counteroffer of $2.5 billion late yesterday, said a representative of one of the funds, who asked not to be identified because the talks are confidential.
In bankruptcy, the majority of the lenders who approved the $2.25 billion plan could force the minority to accept a payout similar to the rejected deal. The dissidents plan to object to the company bankruptcy plan to put its best assets into a new entity, said a person familiar with their thinking. "
http://www.bloomberg.com/apps/news?pid=20601087&sid=aWqvZO9M6JGc&refer=home
Posted by Anal_yst , Apr 30, 2009 11:05AM
Nice. Wonder if Appaloosa is involved at all, anyone know?
Posted by guest , Apr 30, 2009 11:09AM
is this hanging of the hedgies a con? look what the journal says:
"One reason Chrysler needs to file for bankruptcy protection is so that Fiat can clear out hundreds of auto dealers from its sales network, which is easier to do in bankruptcy, where dealer franchisee agreements can quickly be rejected or amended. The auto maker also has asbestos and environmental liabilities that Fiat doesn't want and are more easily shed in bankruptcy court."
http://online.wsj.com/article/SB124109550079373043.html#mod=testMod
Posted by guest , Apr 30, 2009 11:12AM
Actually now that I rethink this, does Obama really want to settle this Chrysler thing outside of bankruptcy?
Maybe not. He just needs a "bad guy" to blame for the bankruptcy.
Chrysler still has to restructure its contracts with dealers and parts suppliers - plus they have contingent liabilities (e.g., asbestos) that Fiat does not want to carry.
Yeah, putting Chrysler in bankruptcy while looking like they did "everything they could to save it" is probably the White House political calculus.
Posted by guest , Apr 30, 2009 11:18AM
Jennifer Granholm "blaming this whole thing on hedge funds" per CNBC
Posted by guest , Apr 30, 2009 11:49AM
So wait...the President of South Africa is a polygamist?
Posted by guest , Apr 30, 2009 12:12PM
16, I don't think "polygamist" covers the full gamut of Zuma's "extracurricular activities."
Posted by guest , Apr 30, 2009 12:22PM
Obama is turning into a latter-day David Dinkins
.
Posted by guest , Apr 30, 2009 12:40PM
16, I don't think "polygamist" covers the full gamut of Zuma's "extracurricular activities."
Posted by guest , Apr 30, 2009 1:14PM
who reads the f*cking WSJ anyways?