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-   -   Chrysler Creditor's Object........... (http://www.politicalwrinkles.com/us-congress-legislative-branch/7147-chrysler-creditors-object.html)

MrLiberty 05-04-2009 10:11 AM

Chrysler Creditor's Object...........
* What’s this?

NEW YORK -- A group of Chrysler's creditors raised their first legal objections to the automaker's bankruptcy plan today, saying the sale to Fiat was "patently illegal," and that the case should not move forward until the automaker and the U.S. Treasury acknowledge the creditors' rights.

The group holding about $1 billion in Chrysler debt also contends that the reorganization plan was "incomprehensible," paying off about $25 billion of claims on Chrysler -- including the UAW retiree health-care trust fund -- while giving lenders $2 billion to satisfy $6.9 billion in secured debt. The creditors argue that the $2 billion was less than Chrysler would be worth if the automaker was liquidated.

Calling itself the Chrysler Non-TARP Lenders -- mainly investment firms that have not taken money from the financial industry bailout -- the committee also accused the Obama administration of wrongly using bankruptcy for political gain, contending that the government could not use money from the $700 billion financial industry bailout to keep Chrysler operating in bankruptcy.

The deal forces Chrysler to "manufacture the type of smaller cars the Government wants manufactured, satisfy the demands of union laborers, and protect the Government’s investment in Chrysler – all components of a political agenda imposed on Chrysler’s management," the group said in a filing today.

Chrysler's creditors make first objection | Freep.com | Detroit Free Press

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The Obama administration is failing in keeping the auto industry alive. Instead they are driving it into the ground.

Chrysler will not survive because of the way Obama is handling this.

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