Re: [Pen-l] Crybaby vultures

[Doug Henwood <dhenwood@xxxxxxxxx>]

On May 1, 2009, at 9:49 PM, David B. Shemano wrote:

> As I pointed out in an earlier post, Chrysler is sitting on $1.89  
> billion in cash.  If the proposed payment to secured creditors is $2  
> billion, it is a certainty that one or more of the hedge funds is  
> going to come to court and offer to pay $2.1 billion for all of the  
> assets, because all the fund would have to contribute is $200  
> million (the other $1.9 billion is sitting right there).  In other  
> words, $200 million for all of Chrysler's receivables, inventory,  
> real estate, intellectual property, etc.  The only reason that would  
> not happen is if the US government exercises its will to  
> intimidate.  No matter what your politics, you should be very, very  
> concerned if that happens

Why? Because workers and the broad economy would be better served than  
a bunch of hedge fund vultures?

I thought American bankruptcy law has historically been friendly to  
debtors. Screwing creditors now & then is good for growth. Why not now?

Doug
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