I love this guy
President Barack Obama called the holdouts "speculators" who hoped for a better deal from the U.S. taxpayer, and Michigan lawmakers threatened to pull state business from them.
Tom Lauria, an attorney at White & Case who represents an ad-hoc group of the dissenting secured lenders, told the court that publicly identified group members had received death threats "which they perceive as being bona fide." Sound familiar? Remember those unfortunate AIG souls who received bonuses for doing their job? I detect a disturbing pattern here.
As a result, the group may seek to disclose its membership to the court under seal, Lauria said. Lenders who received death threats have notified police and the FBI, he said.
The first-lien lenders were owed a collective $6.9 billion, and four large banks led by JPMorgan Chase & Co that controlled about 70 percent of the debt had approved a plan to take $2 billion cash.
A group of investment funds led by Oppenheimer Funds and Stairway Capital had objected to the payout terms as unfair (See "Something smells in Italy" post) and filed an immediate objection on Monday asking Gonzalez to block the Fiat deal and the government's offer to provide bankruptcy financing to Chrysler. JPMorgan lawyer Peter Pantaleo, of Simpson Thacher & Bartlett LLP, told the court Chrysler had 90 percent of the debt agreed, more than enough to support the sale.
The $2 billion payout would amount to about 29 cents on the dollar, but a liquidation analysis prepared by an adviser to Chrysler suggested the payout could be as little as 9 cents on the dollar if the automaker were forced to liquidate.