Chrysler Debt and the hold-outs
Now I am sure that I do not have all of the facts but it seems to me that the debt holders who would NOT agree to deal with the government, bought their Chrysler debt at 30 cents on the dollar. Then the would NOT give in to 28 cents on the dollar!!!
I am not sure this is correct but I have seen reference to it twice now!!
There are also references to these Wall Street investment firms being speculators who specialize in these kinds of investments.
My thoughts are that the companies bought SENIOR debt (meaning usually gets priority in Bankruptcy Court) at a low price, expecting to receive a higher price once the company goes bankrupt, which was looking certain. Therefore, these companies WANTED Chrysler to GO bankrupt. IN FACT, they were betting on it ... up to maybe $1 billion.
The cover they went for is that they invest for teachers and pension funds!!! Laughing.
I am not sure this is correct but I have seen reference to it twice now!!
There are also references to these Wall Street investment firms being speculators who specialize in these kinds of investments.
My thoughts are that the companies bought SENIOR debt (meaning usually gets priority in Bankruptcy Court) at a low price, expecting to receive a higher price once the company goes bankrupt, which was looking certain. Therefore, these companies WANTED Chrysler to GO bankrupt. IN FACT, they were betting on it ... up to maybe $1 billion.
The cover they went for is that they invest for teachers and pension funds!!! Laughing.
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