Knownot writes: >> And "unfairly" in "discriminate unfairly" is an objective >> standard? Anyway, wouldn't it be reasonable (including "politic") if the >> bankruptcy judge were to "find" (that is say that he believes and rules) >> that the secured lenders shall retain their liens and by the terms of the >> plan will receive deferred cash payments equaling the present value (as the >> judge determines the present value to be) of the collateral securing the >> loan?
You are referring to a "cramdown" process as part of a plan. I don't want to be technical, but the proposed "plan" is not a formal bankruptcy plan. Instead, it is a sale of the assets to a new entity, which means creditors do not get to vote and protections are different. The government is going to try and force the sale through in the next 60 says. In any other bankruptcy case, there would be no chance in hell the judge would approve the sale in 60 days, precisely because the "plan" is a bankruptcy plan, in which the proceeds of sale are allocated among creditors, in which case creditors should get to vote and receive the various protections creditors receive in a plan process. As I pointed out in an earlier post, Chrysler is sitting on $1.89 billion in cash. If the proposed payment to secured creditors is $2 billion, it is a certainty that one or more of the hedge funds is going to come to court and offer to pay $2.1 billion for all of the assets, because all the fund would have to contribute is $200 million (the other $1.9 billion is sitting right there). In other words, $200 million for all of Chrysler's receivables, inventory, real estate, intellectual property, etc. The only reason that would not happen is if the US government exercises its will to intimidate. No matter what your politics, you should be very, very concerned if that happens. David Shemano _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
