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Chrysler Bankruptcy- Chicago Mob Style

Mike

Well-known member
by Kelly EstesRobin Hood (Pres. Barack) Obama pulled a fast one just the other day.


Chrysler, recently forced into a ‘surgical’ bankruptcy directed by the White House, is watching the screws being put to its creditors and the taxpayers. How?

Dave Cribbin writes:

In the Chrysler deal, the Union fared even better, as they were unsecured creditors and the Chrysler bondholders were secured creditors. The bondholders received 28 percent of the value of their $6.9 billion in bonds in cash; the Union will receive stock worth approximately $4.2 billion, and a note for an additional $4.58 billion, which represents 82 percent of the value of their claim. Either the government negotiators have dyslexia and have made a terrible mistake in their paperwork, or this is political payoff WRIT LARGE. Is this not the equivalent of financial water-boarding?

And thus we enter a brazen new era of government, when the White House is openly complicit in the theft of—as a matter of fact is directing the looting of—private property from investors. Welcome to the Rule of Man, or as the President calls it, change we can believe in! Where campaign contributions mean everything and the rule of law, not so much.

American taxpayers should be frightened. There’s a bandit gang on the loose, robbing investors.

With open thievery going on, and the investing rules of the game being twisted to suit the robber’s needs, Americans have every reason to be outraged.

These are mob tactics, plain and simple. Now, what are we American taxpayers going to do about it?
 

hypocritexposer

Well-known member
Taxpayers forced to fund liberal campaign. ACORN and UAW now on taxpayers' dime. But don't speak up, you may get the Liberal wish of a one party system! I wonder if breaking corporations and Republican contributors will have any effect?

UAW’s political action committee spent $13.1 million last election cycle, a slow year for the union’s political arm. Of the PAC’s $2.3 million in direct contributions to candidates and candidate PACs, more than 99 percent went to Democrats. Of 42 Senate candidates to get UAW money, only one was Republican, and that was Arlen Specter.

The union’s PAC also reported $4.5 million in independent expenditures supporting Obama, plus an additional $423,000 opposing John McCain.

So, here’s the arrangement: You pay your taxes, the Obama administration funnels some of the money to Chrysler, whose profits enrich the UAW, which in turn funds Obama’s re-election.

Predictability, precedent and the rule of law have been replaced with the fiat of politicians. Chrysler could become a pass-through entity from taxpayers to the Democratic Party. And in charge of it all is a Democratic fundraiser. Boss Tweed would be proud.

http://www.washingtonexaminer.com/politics/Obamas-auto-policy-All-in-the-Democratic-family-44414452.html
 

Steve

Well-known member
Chrysler LLC will not repay U.S. taxpayers more than $7 billion in bailout money it received earlier this year and as part of its bankruptcy filing.

This revelation was buried within Chrysler's bankruptcy filings last week and confirmed by the Obama administration
 
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Anonymous

Guest
Details of Chrysler bankruptcy, restructuring plan
Fri May 1, 2009 9:02am BST


Reuters - The Obama administration summarized its plan for Chrysler's Chapter 11 bankruptcy and Chrysler's alliance with Fiat SpA as follows:



BANKRUPTCY

* Chrysler will use Section 363 of the federal bankruptcy code to "clear away the remaining impediments" to its restructuring.

* New Chrysler will buy all assets of old Chrysler out of a Chapter 11 bankruptcy case in exchange for a $2 billion payment to secured lenders.

* New Chrysler will create an independent trust to provide healthcare for Chrysler retirees, funded by a note of $4.6 billion payable over 13 years with a 9 percent rate of interest. It will receive 55 percent of equity of the reorganized Chrysler and will have the right to choose one director.

* U.S. Treasury gets 8 percent of equity in new Chrysler and right to choose four company directors.

* Governments of Canada and Ontario (the national government and government of the province) will together get 2 percent of equity in new Chrysler.


* The U.S. government will stand behind Chrysler's efforts to use our bankruptcy code to clear away remaining obligations.


CHRYSLER-FIAT DEAL

* The alliance creates 6th largest global automaker.

* Fiat brings "billions of dollars" in technology to help Chrysler build more fuel-efficient cars in U.S. factories.

* Fiat has right to choose three Chrysler directors. It can earn up to 15 percent in additional equity in three tranches of 5 percent for meeting targets such as producing a vehicle that performs at 40 miles per gallon from a U.S. factory.



CREDITORS

* Chrysler's largest secured creditors agreed to exchange their portion of $6.9 billion debt for a pro-rata share of $2 billion in cash.

* United Auto Workers union made concessions on wages, benefits and retiree healthcare that will help save jobs and make Chrysler more competitive.


Daimler, a minority shareholder in Chrysler, will waive its share of Chrysler's $2 billion of second lien debt, give up its 19 percent equity interest, and pay $600 million to Chrysler's pension funds.

* Cerberus will waive its share of Chrysler's $2 billion of second lien debt and forfeit its entire equity stake in Chrysler.


* The U.S. Treasury will lend up to $6 billion to the Chrysler-Fiat alliance through its restructuring period.

* The government is prepared to provide $3.3 billion debtor-in-possession financing through Chapter 11 proceeding.

* The government is prepared to lend $4.7 billion to the new Chrysler in the form of a term loan with $2.1 billion due in 30 months. Half of the balance will be due on the 7th anniversary, and the remainder will be due on the 8th anniversary of the loan. There is an additional note of $288 million, which is the government's fee for making the loans.


* GMAC will provide dealer and customer financing, and continue to do so after Chrysler emerges from bankruptcy. The U.S. government will provide capitalization that GMAC requires to support the Chrysler business.

* Chrysler will honor consumer warranties. The U.S. Treasury is making $280 million available as a backstop on the orderly payment of warranties for cars sold during the restructuring period.



SUPPLIERS

* Chrysler will seek authority at its first bankruptcy hearing to continue to pay suppliers, and the U.S. Treasury supplier support program will continue to operate.
 

Mike

Well-known member
The UAW is the only one coming out in this deal............ :roll: :roll:

Lou Dobbs said 55% tonight and boy is he pissed. :mad:
 

hypocritexposer

Well-known member
Here's the breakdown of the numbers from Beck. It's obvious what happened when the numbers are broken down.

http://www.foxnews.com/search-results/m/22236423/sweet-deal.htm
 

Steve

Well-known member
U.S. Treasury gets 8 percent of equity in new Chrysler and right to choose four company directors.

and what will that be worth?

Private equity asks, what is Chrysler worth?
Estimates vary from nothing to $13.7 billion

Obama gives them 9.5 billion for an 8% stake..

the union gets 50% stake for the 19 billion it feels it deserves..


stupid liberals...
 
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Anonymous

Guest
Steve said:
U.S. Treasury gets 8 percent of equity in new Chrysler and right to choose four company directors.

and what will that be worth?

Private equity asks, what is Chrysler worth?
Estimates vary from nothing to $13.7 billion

Obama gives them 9.5 billion for an 8% stake..

the union gets 50% stake for the 19 billion it feels it deserves..


stupid liberals...

So how much would the alternative of letting Chrysler go under- along with the jobs- their insurance plan- and their retirement plan- end up costing the country/taxpayers in unemployment, medicare/medicaid, welfare aid, increased foreclosures, etc. etc...... :???:
 

hypocritexposer

Well-known member
So how much would the alternative of letting Chrysler go under- along with the jobs- their insurance plan- and their retirement plan- end up costing the country/taxpayers in unemployment, medicare/medicaid, welfare aid, increased foreclosures, etc. etc......

I haven't seen any numbers, have you? That would have been a good question to have answered!

You'd get that type of answer if the Government was a little more transparent, and not too busy twisting arms!
 

hopalong

Well-known member
Oldtimer said:
Steve said:
U.S. Treasury gets 8 percent of equity in new Chrysler and right to choose four company directors.

and what will that be worth?

Private equity asks, what is Chrysler worth?
Estimates vary from nothing to $13.7 billion

Obama gives them 9.5 billion for an 8% stake..

the union gets 50% stake for the 19 billion it feels it deserves..


stupid liberals...

So how much would the alternative of letting Chrysler go under- along with the jobs- their insurance plan- and their retirement plan- end up costing the country/taxpayers in unemployment, medicare/medicaid, welfare aid, increased foreclosures, etc. etc...... :???:


How much is it costing US now to bail them out ??????hat bail out money is coming from OUR pockets and it is not CHANGE>
Can you answer that oldtiimer?????
 

Steve

Well-known member
Oldtimer said:
Steve said:
U.S. Treasury gets 8 percent of equity in new Chrysler and right to choose four company directors.

and what will that be worth?

Private equity asks, what is Chrysler worth?
Estimates vary from nothing to $13.7 billion

Obama gives them 9.5 billion for an 8% stake..

the union gets 50% stake for the 19 billion it feels it deserves..


stupid liberals...

So how much would the alternative of letting Chrysler go under- along with the jobs- their insurance plan- and their retirement plan- end up costing the country/taxpayers in unemployment, medicare/medicaid, welfare aid, increased foreclosures, etc. etc...... :???:

maybe you didn't notice, but they already went under..
 
A

Anonymous

Guest
Steve said:
Oldtimer said:
Steve said:
and what will that be worth?



Obama gives them 9.5 billion for an 8% stake..

the union gets 50% stake for the 19 billion it feels it deserves..


stupid liberals...

So how much would the alternative of letting Chrysler go under- along with the jobs- their insurance plan- and their retirement plan- end up costing the country/taxpayers in unemployment, medicare/medicaid, welfare aid, increased foreclosures, etc. etc...... :???:

maybe you didn't notice, but they already went under..

Not really- they are being reorganized and will continue to operate...

And thanks to President Obama-- you, I, don, Mrs. Greg are all now shareholders...
 

hopalong

Well-known member
Oldtimer said:
Steve said:
Oldtimer said:
So how much would the alternative of letting Chrysler go under- along with the jobs- their insurance plan- and their retirement plan- end up costing the country/taxpayers in unemployment, medicare/medicaid, welfare aid, increased foreclosures, etc. etc...... :???:

maybe you didn't notice, but they already went under..

Not really- they are being reorganized and will continue to operate...

And thanks to President Obama-- you, I, don, Mrs. Greg are all now shareholders...[/quote]

But at what price??????????????
 

TexasBred

Well-known member
Not really- they are being reorganized and will continue to operate...

And thanks to President Obama-- you, I, don, Mrs. Greg are all now shareholders

BUT only on the liability side. Don't waste anytime going to the mailbox to picku up your dividend checks.
 

Mike

Well-known member
And thanks to President Obama-- you, I, don, Mrs. Greg are all now shareholders

I sincerely hope the above statement was made in jest. :roll:

When the U.S. & Canadian taxpayer takes all the risk, and only gets a 10% stake in a flopping business, there is nothing to be proud of.

But when the UAW puts up next to nothing and gets a 55% stake, everyone should look at this with condescension and consternation.

Then there the bondholders who are to get only a 29% cut of the cash they have loaned in the past.....something has gone awry.

In a Bankruptcy case all equal creditors should be treated equally.

We all know that Zer0 is favoring the Unions here, but to be so blatant should cause concern for all. This is a slippery slope that may backfire in thir face.............
 

hypocritexposer

Well-known member
When the U.S. & Canadian taxpayer takes all the risk, and only gets a 10% stake in a flopping business, there is nothing to be proud of.

Think positive Mike, this could be the start of a North American Union.

We're now partners. We're family/clan/cosca, along with "Vinnie", from Italy.
 

aplusmnt

Well-known member
Oldtimer said:
So how much would the alternative of letting Chrysler go under- along with the jobs- their insurance plan- and their retirement plan- end up costing the country/taxpayers in unemployment, medicare/medicaid, welfare aid, increased foreclosures, etc. etc...... :???:

Not as much as people like you and Obama want to hold on to. Once Chrysler goes under, then Ford and Chevy would have chance to survive. They would produce more cars to make up the slack, some of the Chrysler people could get jobs at those auto makers and others could find work elsewhere.

What you are missing is if we do not need or want Chrysler cars, if more cars are being made than we want or need. Why keep them in business?

What happened to those people that use to make buggy whips? The absorbed into the work force.

You can not prop up a failing business, it turns into a black hole and it keeps competitors from having fair chance to profit.

We prop up Chrysler and Ford fails also. Kind of like producing beef, if to much beef is produced and prices fall to low, someone has got to quit producing or everyone will lose money!
 
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