Friday, May 1, 2009

The Chrysler Ultimatum And The Full List Of Treasonous, Patriotic Hedge Funds

The government, in its recently discovered flourish to annihilate free market spirit, has given Chrysler an ultimatum to conclude the 363 sale to Fiat by June 27th or face the full wrath of Obamanomics. In a bankruptcy court filing submitted yesterday by Lev Dassin, official title "Attorney for the United States Department of Treasury", unofficial title "Enforcer of Communist Automotive Agenda", presented the following ominous threat, which must be well read by any other company that is currently suckling on Uncle Sam's teat:
Treasury recognizes that this is an extraordinary and unprecedented case. Given the importance of Chrysler to the American economy, and the path to viability Chrysler has presented to Treasury, Treasury stands prepared to support Chrysler in this endeavor. Its support, however, is limited, and in the end it will be the actions of Chrysler and its constituents, and their willingness and ability to resolve their issues under the supervision of this Court, that will determine whether Chrysler survives.
The mandated series of events, as cataloged in the filing presented below, demands that Chrysler has to i) file a motion to approve the sale by May 4, ii) win approval of proposed bidding procedures by May 9, iii) receive any competing offers by May 20 and iv) complete the sale by June 27.

Additionally the filing discloses that Fiat will be a stalking horse bidder in partnership with the Chrysler employees VEBA, holding a 55% stake, the US Treasury with 8%, and the Canadian government agency Export Development Canada with 2%.

As part of the ultimatum, the U.S. will extend a $4.7 billion first lien loan to New Chrysler only if the deal with Fiat is completed. And for the record, the Debtor in Possession loan from Uncle Sam will carry a 5% interest rate. The last memorable words of ominosity from Dassin were the following "Treasury must be a careful and vigilant guardian of the public’s money, however, and accordingly its support for Chrysler’s revitalization must be limited."

The game of chicken, which Obama keeps on losing and petulantly blames hedge funders every single time, continues.

And as for the list of treacherous, treasonous patriots who dares stand up to the wave of ever encroaching socialization, the list of all secured creditors is presented below. The 20 of them who dared to be demonized in public for standing up to for fiduciary responsibilities deserve a medal once this whole situation is blown over... Unfortunately it won't happen as they are likely the very same ones who will soon bear the brunt of public anger yet again, when it is General Motors that files for bankruptcy on May 31.
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