Originally Posted by The Doctor
The Chrysler bondholders were forced to take the deal by the bankruptcy judge.
Both Chrysler and GM had more than sufficient cash flow from ongoing operations to remain going concerns throughout a normal bankruptcy process. They simply lacked the means to maintain operations and service debt and other long-term obligations. A proper bankruptcy would have shielded them from their creditors while a just process transpired...
Hahahah...they had enough cash flow to handle concerns...well...except for maintaining operations...
If they did, as you say, then why did they need to borrow $17 billion from the government in Dec 2008??
The fact is your claim has no basis in reality.
92% of Chryslers secured debtors approved the $0.29% deal.
Nothing prevented them from selling off the assets themselves....if they didn't like it they didn't have to take the deal.
Wall Street, specifically, whom controlled over 80% of Chrysler debt, agreed. Why did they do that..because they knew that was the best they could do under ANY circumstance.
Wall Street held 6.9 billion and the dissenting group held $300 million. The Retired Indiana State Police officers were forced into the deal by Wall Street...the majority credit holders and not by the US Government...the moment the majority secured creditors put their pen on the paper.
If the bankruptcy court had overturned the deal he would have overturned the majority secured debtors wishes.
Mourlock's pals got in bed with Wall Street and then realized the bed didn't come with sheets....thought they had a say when they only chipped in $42 million in a bed that cost $6.9 billion....and were surprised they ended up screwed?
Like I said, IMO the Retired Indiana State Police officers Pension Fund Managers were either vultures or morons. IMO Obama was being nice when he called them "speculators".
92% of Chryslers secured creditors APPROVED the deal.
Mourlock is a moron if he believes he could have done better.
Bush and Obama saved Chrysler and GM.
Contrary to his claims...Romney did nothing.