You couldn't have missed yesterday President Obama blasting some hedge funds when Chrysler went into bankruptcy.
Bankruptcy court has a funny way of naming names through public disclosure.
Some investors, including OppenheimerFunds Inc. and Perella Weinberg Capital Management LP’s Xerion hedge fund, bought the debt of the automaker before last July. On June 30, Chrysler auto loans were trading at about 49 cents on the dollar. Xerion, run by Daniel Arbess, OppenheimerFunds and Stairway Capital Advisors, were all part of the dissident group. Hedge funds including Elliott Management Corp. and York Capital Management LP, supported the government’s deal.
Perella and Xerion issued a statement yesterday after the president’s comments saying it accepted the government offer and would attempt to persuade other lenders to do the same.
The New York Times is listing 17 organizations who held out making a deal so Chrysler went into bankruptcy:
Perella Weinberg and 17 other financial firms — including OppenheimerFunds and Stairway Capital, a hedge fund that specializes in troubled companies — rejected the administration’s plan. It was, they argued, simply unfair.
One of the creditors mentioned by Bloomberg is the Bill & Melinda Gates foundation. Wouldn't it be most interesting is they were one of the deal hold outs?
The conservatives are railing on Chrysler at this point and I cannot blame them. Why was Chrysler, a privately held company, not allowed to simply reorganize in bankruptcy in the first place?
I also have heard much ado about the Obama administration protecting the UAW pensions and health care. I'm sorry but what is wrong with protecting a last hold out on retirement for workers?