Fear and Greed Blog

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.