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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (35584)	5/19/2009 1:45:59 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 71588

Re: "there isn't any good reason to modify it in this situation, at least not in the specific ways that are being proposed." Sure there are. The highest legal priority (higher then any particular hierarchy of debt) of chapter 11 bankruptcy reorganizations to to REORGANIZE the company --- and, typically, SLASH it's debt load --- so that a viable business model may reemerge out the other side of the legal process. Any other goals are secondary or tertiary to that primary aim. (Now... in a bankruptcy LIQUIDATION, where the entire company was being disassembled and sold off for scrap, the only concern is the original hierarchy of debt... that, and getting 'best price' during the scrap auctions of the various pieces.) Of course (given the massive global over-capacity in automotive manufacturing that exists currently, and the lack of bids), in a full LIQUIDATION of Chrysler - as I have mentioned before - I expect that the debtors would consider themselves extremely LUCKY to ever see two or even three cents recovery for each dollar of debt that they hold... far worse then they may recover if Chrysler is reorganized and becomes a viable business operation. (Which explains why they are ZERO CALLS from the debtors for liquidation, and no carping to the judge - who would be legally required to consider this option - that 'liquidation amounted to a better proposal'. <GGG>) There are no other plans that have been put to the Court. (No one else is willing to inject the additional money that is required to bring the company out of bankruptcy protection. The creditors should probably consider themselves pretty lucky that Uncle Sammy is pulling their bacon from the fire - to the extent that he is - because otherwise their losses would be near total... there being no other bids.)