If you thought that the initial rulings on a 363 sale at Chrysler were going to be the end of it, you probably weren't paying attention. Right or wrong, several of these lenders are quite simply pissed off. We, of course, will be watching developments carefully.
Plans for a quick sale of Chrysler to a new company majority-owned by a union-aligned trust is "patently illegal" and will be fought in bankruptcy court, one of the holders of the automaker's secured debt said on Thursday.
"We don't succumb to pressure and don't agree to unfair and illegal payment schemes," said George J. Schultze, the managing member of Schultze Asset Management. "We're not conflicted by TARP money or active stress tests."
Three funds associated with the asset manager hold the automaker's secured debt and are part of the nine-member Chrysler Non-TARP Lenders group fighting the restructuring proposal. TARP is the U.S. Treasury's $700 billion Troubled Asset Relief Program.