Comments on: The Chrysler bondholders’ enviable deal http://blogs.reuters.com/felix-salmon/2009/05/19/the-chrysler-bondholders-enviable-deal/ A slice of lime in the soda Sat, 25 May 2013 00:03:13 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Freedom_is_Good http://blogs.reuters.com/felix-salmon/2009/05/19/the-chrysler-bondholders-enviable-deal/comment-page-1/#comment-1853 Freedom_is_Good Fri, 22 May 2009 17:38:15 +0000 http://blogs.reuters.com/felix-salmon/2009/05/19/the-chrysler-bondholders-enviable-deal/#comment-1853 The issue for the bondholders is a far less than 'enviable' deal. They were forced by the US Commander-in-Thief to take a 10% stake in a company where they held 40% of the debt in secured instruments and a union that held far less UNsecured debt received nearly a 50% stake. Gee, I don't think thats an 'enviable' position. It seems like another group being victimized by that "Change" virus thats going around. It makes you sick of your president, takes most of your money, and only leaves some change. The issue for the bondholders is a far less than ‘enviable’ deal. They were forced by the US Commander-in-Thief to take a 10% stake in a company where they held 40% of the debt in secured instruments and a union that held far less UNsecured debt received nearly a 50% stake. Gee, I don’t think thats an ‘enviable’ position. It seems like another group being victimized by that “Change” virus thats going around. It makes you sick of your president, takes most of your money, and only leaves some change.

]]> By: Chris http://blogs.reuters.com/felix-salmon/2009/05/19/the-chrysler-bondholders-enviable-deal/comment-page-1/#comment-1804 Chris Thu, 21 May 2009 17:42:57 +0000 http://blogs.reuters.com/felix-salmon/2009/05/19/the-chrysler-bondholders-enviable-deal/#comment-1804 Well, they're secured. If they don't get 100% of what they're owed, my understanding is that they can just foreclose on the security. In this case, that's probably all of Chrysler's assets, including plants, equipment and intellectual property. Given that, what's to keep the secured investors from foreclosing on the assets, hiring the (ex-) Chrysler employees they need and then making a deal with Fiat? Well, they’re secured. If they don’t get 100% of what they’re owed, my understanding is that they can just foreclose on the security. In this case, that’s probably all of Chrysler’s assets, including plants, equipment and intellectual property.

Given that, what’s to keep the secured investors from foreclosing on the assets, hiring the (ex-) Chrysler employees they need and then making a deal with Fiat?

]]> By: von Pepe http://blogs.reuters.com/felix-salmon/2009/05/19/the-chrysler-bondholders-enviable-deal/comment-page-1/#comment-1733 von Pepe Wed, 20 May 2009 14:35:29 +0000 http://blogs.reuters.com/felix-salmon/2009/05/19/the-chrysler-bondholders-enviable-deal/#comment-1733 Stunningly, no mention of the "bondholders" (really a 1st lien term loan) having a first lien on all assets. You just lump them in with all "stakeholders". Stunningly, no mention of the “bondholders” (really a 1st lien term loan) having a first lien on all assets. You just lump them in with all “stakeholders”.

]]>