Monday, May 11, 2009

Some more interesting items

The Economist writes about how the Obama Administration's Automotive Task force is trashing creditor rights in their rush to save the car companies in a piece entitled "An offer you can't refuse." I think I made the same comment in this post.

The FT writes about the expectations of a GM filing, and how the issues may play out in an article entitled "Long road to a 'good GM' filing."

Thanks to Zero Hedge for pointing out those two items.

Lest we forget, the automotive industry is more than just GM and Chrysler. Mark IV Industries, a Tier 1 supplier, filed for bankruptcy the same day as Chrysler. Here is an article by Bloomberg, a link to Mark IV's Restructuring Information site, and a link to Mark IV's docket.

Investor's Business Daily had an editorial last week entitled "Don't Demonize Chrysler's Debt Holders For Standing Up For Their Shareholders" which has a similar tone to my post from May 1st, Are Hedge Funds Morally Bankrupt? IBD pointed out that the "smaller lenders whom Obama falsely attacked as wanting a taxpayer bailout have taken no taxpayer bailout money."

Stephen Lubben has an interesting post on a potential GM bankruptcy on the Credit Slips blog. He points out that, if GM does a 363(b) sale to a newly created shell, that would "replicate the railroad reorganizations of a century ago." The post includes a link to this paper that he wrote in September 2004.

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