On May 1, 2009, at 9:49 PM, David B. Shemano wrote:
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
Why? Because workers and the broad economy would be better served than a bunch of hedge fund vultures?
I thought American bankruptcy law has historically been friendly to debtors. Screwing creditors now & then is good for growth. Why not now?
Doug _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
