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Politics : View from the Center and Left
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To: quehubo who wrote (111797)5/24/2009 9:55:08 AM
From: KyrosL  Read Replies (1) of 541761
 
The Chrysler senior debt holders get exactly what the Chrysler liquidation value is. Isn't this what you want? In fact, because the process avoids the expenses of bankruptcy litigation that will result from a protracted conventional bankruptcy, the senior debt holders actually get more, because they avoid paying hefty litigation fees from liquidation value.

Now, the Government also decided to put its money into Chrysler to avoid liquidation -- something that the market did not want to do. The Government decided that its Chrysler money will be largely used to benefit the workers.

You can argue against the Government's decision to channel its money to the Chrysler workers and prolong Chrysler's life, but you cannot at the same time argue that the senior debt holders are cheated.
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