Same creditors who forced Chrysler bankruptcy can disrupt Obama's plan in court

Bozita

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Fri May-01-09 01:05 PM
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Same creditors who forced Chrysler bankruptcy can disrupt Obama's plan in court

Source: Grand Rapids Press

Same creditors who forced Chrysler bankruptcy can disrupt Obama's plan in court
by Nancy Crawley | The Grand Rapids Press
Friday May 01, 2009, 9:38 AM

Can investors who refused to play ball with President Barack Obama break up a winning game for Chrysler LLC's bankruptcy?

The president, who took the automaker into Chapter 11 reorganization Thursday, is betting a bankruptcy judge will cement deals approved by most creditors outside the court and force dissidents to climb on board.

It's called a "cram down," which sounds like a sure thing.

But maybe not. That's the reason people don't head to bankruptcy court immediately -- it's hard to predict the outcome.

Read more: http://www.mlive.com/business/west-michigan/index.ssf/2009/05/same_creditors_who_forced_chry.html

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dipsydoodle

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Fri May-01-09 01:29 PM
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1. Surely that would be a dangerous game.

The alternative of full bankruptsy would screw then completely and still allow a phoenix company to replace it : Chryzler whatever.

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Swede Atlanta

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Fri May-01-09 01:50 PM
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2. Cram down will succeed in my opinion....

Cram down will likely succeed in this case. Generally it is fairly successful if creditors cannot come to agreement but is, as the article states, not a given.

I think these hedge funds will be under tremendous political and other pressure to find a way to a viable bankruptcy plan else they would potentially force this to a chapter 7 liquidation. I think they have more to gain in a reorganized Chrysler than a wind-up of the business and sale of the assets.

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xchrom

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Fri May-01-09 02:14 PM
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3. charlie rose -- night before last --

Edited on Fri May-01-09 02:15 PM by xchrom

in talking about the chrysler bancruptcy -- one of the guests mentioned two things i found interesting --

1} this agreement hastered some real anger in the hedge fund financials

and 2} this will go to court.

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DJ13

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Fri May-01-09 02:45 PM
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4. I think those vulture capital funds should have their books examined

by the SEC, the IRS, and the DOJ, but then I've never been someone who rolls over to big money.

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