del
Diamond Member
- Banned
- #21
Secured by what, exactly?
Had they been secure they wouldn't have had to go to court.
Debtors have to stand in line when a company goes down, and the courts decide what percentage of the corpse each debtors gets
They're damned lucky to have gotten 29% back, I suspect.
'Chrysler was broke
The fair thing to have done was to give Chrysler to her debtors.. by rights they owned her.
That's essantially what they're doing by giving stock to the penisoners who are ALSO creditors of the corporation.
I'm fairly certain that the other creditors could have elected to take what they were owed in stocks had they chosen that course.
seems not everyone thinks it's a good deal or legal. damn fiduciary responsibility...
"Three of Chryslers secured creditors are mounting a fresh attempt to thwart the carmakers Chapter 11 reorganisation on the grounds that it violates their legal rights and the US governments authority under the Troubled asset relief programme.
The three all Indiana state pension funds are among a group of 46 creditors that had appeared to back away this month from efforts to derail the process under which a new Chrysler would emerge from bankruptcy protection by July 1. The new entity would be owned by a union healthcare trust, the US government and Italys Fiat"
FT.com / Companies / Automobiles - Funds move to halt Chrysler restructuring