Fight the good fight, be prepared to lose. It was, no doubt, going to be an expensive and painful slog. We might add, though we love rooting for the underdog (except for Spitz, of course) the deck was stacked. All that pain for very little gain:
Chrysler LLC’s secured lenders that opposed the automaker’s bankruptcy sale of assets to a company run by Fiat SpA are dropping their fight in the bankruptcy court case, a lawyer representing the group said.
The group, calling itself Chrysler’s Non-TARP lenders, doesn’t plan to defend earlier objections and may withdraw them formally, said Tom Lauria, the White & Case attorney representing the group.
“After a great deal of soul-searching and quite frankly agony, they concluded they just don’t have critical mass to withstand the enormous pressure and machinery of the U.S. government,” he said.
With the core group of objectors stepping aside, Chrysler’s path toward an alliance with Fiat may have become smoother. The Auburn Hills, Michigan-based automaker is scheduled to have an auction completed May 27 where Fiat is the lead bidder.
What is left to say? You can’t fight City Hall? To the winner the spoils? Who is John Galt?
Chrysler’s Dissenting Lenders Give Up Fight Over Sale [Bloomberg]
Pussies – all of ‘em.
Boycott all union made products!
@2 – Unions still make shit?
@3 Lots of shit.
cowards.
Don’t bring a knife to a gun fight.
Sell your bonds as fast as you can.
~the Muleskinner~
“”And So It Begins”
EP,Dearest, It is John “Galt” . Unless there is a pun in “Gault”…
that’s “Galt”. Come on, EP.
I don’t blame them. I’ve been on the receiving end of a White & Case invoice. They ain’t cheap.
A copy of the home game and a complimentary bottle of Astroglide for the losers. Better luck next time.
Yep! Typo. Thanks!
GM creditors, prepare to be Chooched.
Get used to the headline chumps.
BHO
Those bitches should have at least gone tit for tat. Find some random pension fund LP and send a bunch of retarded war widows (or similar types) to go march on DC. For fuck’s sake, play your own PR card at least once!
@ 16
Agreed.
Also, what happens when the LP’s sue either the fund managers and/or the government (is that even possible?) or some crazy sh!t like that?
MEMO: To GM bondholders,
From The US Govt:
I’m putting the rubber glove on and I’ve got really fat fingers. Spread the wealth.
Why is the GOP so quiet about this?
Guess thats what happens when you try to take on the biggest activist shareholder of them all.
-C
P.S. How would John Galt feel about taking billions of charity from tax payers for failing companies and exploiting that to make money?
P.P.S. Never mind, debating the merits of objectivism leaves both sides intellectually worse off.
welcome to illinois style politics. and you thought getting blagojevich out of office would bring an end to these shady shenanigans…
Congratulations Mr. President! As part of your victory the Dallas Visitor’s Center would like to invite you to visit our fair city. Just take a right on Houston, left on Elm…beautiful park off to your right.
Can we get an Obama Portfolio update today?
@19 They’re dead thats why.
HA HA HA!
Told you so. The losers were shooting blanks. They knew they had no case and they decided that they’d rather go away than spend more $$ on stupid lawyers.
Why are they giving the company to the union and Fiat? Makes no sense, no sense at all.
like cliff said, people are going to be falling all over themselves trying to participate in the TALF public / private deal now.
@26
Actually its a great plan if they stick to it:
Shaft a few investors, temporarily override contract law, and give the Firm to the workers (UAW/VEBA) and an Italian carmaker not quite known for its deft business acumen, and voila! Fast forward a few years and the whole thing is in the toilet, and we can say, HA! You failed, now GTFO we’re doing it the right way this time.
Of course that’ll never happen, but I mean, we can hope, right?
@28
Sniff, sniff!
i’m in ur reorganizations, unleashin ur animal spiritz
@26/28
Actually Sergio Marchionne is well known for his business accumen and brought about a dramatic (and a return to profitabilty) to Fiat.
For that reason it may be a good fit.
While reserving judgment for now, if it works, jobs are saved and the company/division returns to profitablity are we all willing to admit this was a well crafted move?
-C
Won’t all the clients of those funds sue the funds now for breaching their fiduciary duty? Or are the funds somehow going to be protected within this entire deal? So does that mean the clients of the funds take the loss and that is that?
Yes guest @ 25, you sure told us
welcome to the USSA. All those who disagee the “The One” will be crushed.
PLEASE PLEASE PLEASE, let them change the name of the company to…
TWENTIETH CENTURY MOTOR COMPANY
The prophecy will be complete.
All your bond are belong to us.
I will never, ever, buy a Chrysler/Fiat product.
Well the “GM bondholders” are coming up next on CNBC, “they don’t think they are being treated very fairly by the auto task force”. Ya think?
Marchionne may have had a few good years at Fiat (although there still is that pesky €6 billion in debt), but he’s clearly gone off his rocker. There’s no way he’ll be able to handle Chrysler, Opel, and possibly Saab. This is empire building, plain and simple, and it will end in tears.
Saab has only had one profitable year in the past two decades, for Chrissakes. It’s like the Cubs getting a new coach and all of a sudden everybody expects them to win the world series.
GM bondholders say they’re willing to go to bankruptcy. Yeah for like a day, or 10 minutes, or until they cry uncle.
Very sad. Why buy senior corp debt? Roll the dice and invest in equities or demand senior corp debt pay the same high coupons as riskier high yield debt.
I cannot wait to see faces on corp. treasurers who are thinking about their next bond deal and how much more they will have to pay investors because the capital structure is no longer legally sound in a court of law.
We all lose in the long run!
yes, why is the GOP so quiet about this? This is huge! They are watching a bulldozer drive through corporate finance law and not even wincing!
FIAT = Fix It Again Tony
43 That’s as old as the crust in your underwear.
Tony
How do we know the GOP is silent about this?
If they weren’t, do you think we could count on our fourth estate to report it?
They think everyone to the right of Noam Chomsky is a teabagger.
@31 – you believe in fairy tales – don’t you.
UAW, Fiat, and the governemnt running this company – prepare for 10 daily 1-hour work breaks and 0% productivity and quality improvement goals.
Mitterrand sends his congratulations.
What do you expect from a bunch of bankers ?
http://garrett.house.gov/News/DocumentSingle.aspx?DocumentID=124980
One guy who knows whats up
Off topic, but… TGFD needs your help.
Last week, in the “Get Your Submissions In” thread, TGFD was nominated as one of Wall St’s most beautiful. I nominated myself, of course, and TGFD even wrote several supporting endorsements.
Since the thread has now been removed from the “Most Commented” section, I believe that the results will soon be released, and TGFD is concernd that my candidacy may not have enough votes.
Since it’s Friday afternoon, and if you are bored and looking for some frivolity, please help TGFD with an endorsement.
Read my nomination and supporting info for some insight on TGFD. BTW, in one place referencing “Ackman’s eyes”, TGFD should have added, “sans those dark eyebrows.”
Just think, it would be nice to have that Anatoli guy (from last nite’s “Write-Offs”) inscribe my selection onto that big, marble head stone that the Russian Bear is sending to Delaware for placement at TGFD’s graveside.
The Guy from Delaware (Once and Future Dead)
all of you do-good liberals that work on the street and voted for Him because you thought He was gonna save the whales and hug some trees and be all happy and shiny and he was going to bring peace to the middle east and give every child in the world a ticket to harvard and cure the worlds energy resource problems with the flick of a new new deal pen and stop the iraq conflict and teach arabs how to not kill each each other because he is just so so wonderful and perfect and he speaks so well! well arent you glad you voted for him now? when I was one of five mccain supporters in manhattan where the fuck were all of you people? are you happy now?
I’m still locked in Barney Frank’s basement…
- John Galt
52 YES … we can!
I wanna share a room with Erin Burnett.
@ #52
Well I guess that makes you a loser, eh?
@52
i voted dem. i’m in equities, ytd is green, and i still don’t give two shits about fixed income.
what happened to the daily First Analyst posts? lost its appeal when people figured out O-money actually called the bottom? i guess re-posting everyday how sarcasm backfires kind of sucks right?
bring it bitch.
@52 when do you come up for air? mccain must be pleased with your skillz.
Ayn Rand/John Galt shout outs are getting a bit old. Every douche in this country, half of which are illiterate anyway, thinks they are performing crazy mental gymnastics by throwing Galt out in every economic conversation.
We get it…we have all read the fucking book.
@59
how bout Dani Rodrik?
@59 what about Willie Gault? He did the Superbowl Shuffle in ’86. Does that count for anything?
I never read the book, to damn long -like reading a phone book. My eyes were bleeding around page 50. The only book more painful was the Power Broker about Robert Moses. At least that had pictures!
Tell me if they have a Classic Comics edition for sale on eBay.
@61 I attempted reading the darned book but it tried my patience. I got to about page 60 and gave up. I don’t give a rats hiney about steel mills, rail roads, and run down parts of big cities that conjure up images of the 1920′s and 30′s … nor do I have any interest in manual typewriters – didn’t they have computer keyboards back then?
Dead Guy From Delaware
@57 O-Money? is he a rapper?
God DAMN Obama is awesome. Making so much money over here!
59: it should be half of “whom” are illiterate anyway.
31: Marchionne has never dealt with the UAW. You think he’s gonna smoothly merge those two cultures? Plus Opel?
Only a miracle worker like Obamer could pull that off.
Pfluger
@ 51 – Yo! Dude. You’re starting to sound like a wimp. Don’t ever ask these asshats for help. We got your back down here on the farm, hommie!
And WTF’s up with this dead guy stuff?
TOGFD – Confused.
TOGFD@#66…
Fear not, and don’t be confused. The asshats have a part in TGFD’s plan. I’m waiting for them to play it.
As for the dead guy thing, one of the tools here started a rumor last week that TGFD had fucked out. Since I hadn’t posted for a few days, they must have missed me and then went crazy with grief.
The Guy from Delaware
@ 67 – Word.
TOGFD
Good riddance, now the real work can begin.
@57, I will look forward to your reaction when all your ‘green’ is hit with a 90% ‘patriotic tax for the little guy.’ You do realize that China is not gonna bail this thing out forever and at some point of time you cannot run up a $100 trillion deficit? Unless of course Obama goes the Mugabe way – in which case your ‘green’ stuff aint gonna be worth shit.
‘In 1994, United’s pilots, machinists, bag handlers and non-contract employees agreed to acquire 55% of company stock in exchange for 15% to 25% salary concessions….United’s unions, having larger voice in running the company, later successfully bargained for significant pay increases, but the effect was only short-term. The rank and file employees were locked into their stock, which got wiped out in the eventual bankruptcy.’
@71, Apparently, those in power do not learn from history and thus are doomed to repeat the same mistakes over and over again.
Fuck you people, seriously, with your bullshit claims of “the US government strongarmed bondholders” and “Obama is a fascist communist value-destroyer.” I yell a throaty, contemptuous BULLSHIT in your direction.
You know why they settled? Not because of some fucking strongarming, but because THEY WERE GOING TO GET A WORSE DEAL IN BANKRUPTCY COURT. Face it folks, they played chicken speculating on the bailout, 90% of creditors settled, and they got their asses handed to them.
Don’t give me this bullshit about fiduciary duty either. If I were in one of these plans, I’d sue their ass off if they went to bankruptcy court, spent time and money on the case, and ended up getting me HALF OF WHAT THE GOVERNMENT OFFERED IN THE FIRST FUCKING PLACE.
Jeez, the fucking bitching that goes on in this board, I swear.
Seriously. Don’t put yourself against the bond market. You are sure to create a disaster.
$100 Trillion in deficits, and you asshat libs are pretending that there is not a slow-motion train wreck heading down the tracks?
The Chrysler debacle is just a symptom of a disease that has not yet even metastasized. The Chrysler bond holders are only the first immune-deficient taco vendors to get hit by the swine-flu which is the Obama~nomics agenda.
You want to know where this is headed? Think “Argentina.”
Fiat and the UAW? Are you f-ing kidding me? The UAW and FIAT are the cavalry that are supposed to come riding to the rescue of Chrysler?
Oh lordy, ohhhh, call me an ambulance,
*sides splitting*
You heard it here first – Chrysler will be gone in 5-7 years after more billions in taxpayer aid. FIAT, the UAW and the US government? Were the three stooges unavailable? Us oldsters will remember that FIAT used to sell cars in the US – their quality was so bad that FIAT came to stand for “Fix It Again Tony!”
You heard it hear first – Chrysler will be gone in 5-7 years after billions more in federal aid. FIAT, the UAW and the US government? Were the three stooges not available? Us oldsters will remember that FIAT used to sell cars in the US. They were so dependable that FIAT came to mean “Fix It Again Tony.”
You heard it hear first – Chrysler will be gone in 5-7 years after billions more in federal aid. FIAT, the UAW and the US government? Were the three stooges not available? Us oldsters will remember that FIAT used to sell cars in the US. They were so dependable that FIAT came to mean “Fix It Again Tony.”
You heard it here first – Chrysler will be gone in 5-7 years after billions more in federal aid. FIAT, the UAW and the US government? Were the three stooges not available? Us oldsters will remember that FIAT used to sell cars in the US. They were so dependable that FIAT came to mean “Fix It Again Tony.”
#73 THEY WERE GOING TO GET A WORSE DEAL IN BANKRUPTCY COURT.
-If this were true, then we didn’t need to spend any money on Chrysler and the loans to it have been a huge waste. And Obama didn’t need to give a speech blaming bondholders, the debtholders would have settled without interference for something close to it.
The government has effectively robbed taxpayers and bondholders and handed the money to the UAW so they can make contributions to Obama/Pelosi.
I bought a FIAT Spyder convertible in 1979. It was a sexy little roadster. White with tan leather interior.
It leaked oil from the first day I bought it. Burned through a transmission after 11,000 miles (among a hundred other little annoyances and miscellaneous repairs).
Took from 3 weeks to 3 months to get parts from Turin, even for basic stuff like brakes.
I think that the only thing that could make a FIAT worse would be the UAW.
Like I done said. Why, oh why wasn’t the initial filing forced to be Chapter 7, not 11?