Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joe NYC who wrote (479303)	5/8/2009 6:45:31 PM
From: i-node	4 Recommendations Read Replies (3) of 1573190

Four large banks that hold most of Chrysler's $6.9 billion secured debt have agreed to accept about 29 cents on the dollar as part of a government-brokered reorganization plan. This deal stinks to high heaven, and I hope these guys bring it down. The right to subordinate debt has vested in the debtholders from the earliest days of corporate law. It is astonishing that corporate leaders around the country are not standing up in harsh opposition. How do you maintain the integrity of debt markets if you can't be assured of the seniority of the debt when you buy it? Worse, these thugs are effectively subordinating this debt by force and handing over the preference to the unions who destroyed the company. It is beyond belief to me that this process is legal and could be upheld in a court of law. Even a bankruptcy court has to have respect for the seniority of debt or the entire system collapses. But to use it as a political payoff is beyond any reasonable interpretation of the law surrounding these kinds of transactions.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next