Well played Hedge Fund managers. Your strategy of rejecting every offer, then trying to smear the White House and work the refs is really paying off:
The judge overseeing the bankruptcy of Chrysler on Tuesday took a significant step toward allowing the sale of most of the automaker to Fiat, approving the bidding procedures advocated by the company and backed by the Obama administration.
The decision by the federal bankruptcy judge, Arthur J. Gonzalez, is a setback for a group of Chrysler creditors who have argued that liquidation of the company or some other transaction could yield greater value. These lenders, primarily investment firms, have said that the plan for the Fiat transaction ran afoul of bankruptcy law and would chill efforts by others to produce competing, potentially higher bids.
But Judge Gonzalez disagreed, saying, “The court concludes that the bidding procedures are appropriate and necessary.”
The judge’s decision was a victory for Chrysler and the government, which together argued that a speedy sale was the only way to protect tens of thousands of jobs and help along the American economy.
“It’s a very big first step,” said Howard Seife, the head of the bankruptcy practice at the law firm Chadbourne & Parke. “It’s clear that the company is moving down the road to a Fiat sale.”
The judge’s decision was the second blow dealt to the holdout lenders during a marathon hearing on Tuesday that began mid-afternoon and ended at 11 p.m.
And just so we are clear, since there will no doubt be a couple more breathless letters whinging about “the rule of law” and the “sanctity of contracts” and “this is America,” nothing improper has been done. Not one law has been broken or violated. This is playing out exactly according to the law, the Constitution, and anything else you want to chuck out.
So when you read the bleatings of some hedge fund manager echoed on every wingnut blog, just remember, no laws have been broken, nothing unethical has taken place, and they only have themselves to blame. Which is, of course, why they are squealing so loudly.
And one final thing. I adore hearing about the sanctity of contracts, because it just cracks me up. Where was all this concern about the sanctity of contracts when the entire Republican caucus was trying to destroy every auto union contract out there? Where was this overabiding concern for the sanctity of contracts every time the autoworkers have made concessions the last couple of decades? Why are there hundreds of thousands of lawyers out there spending every day trying to litigate their client out of contracts or trying to litigate more favorable terms for their clients? Just plain silliness.
The hedge fund managers gambled that they could push Chrysler to liquidation so they could possibly get a few more pennies on the dollar while destroying tens of thousands of lives, and lost. Twice. Sorry, fellows, but just close your eyes, bite the pillow, and think of the Bank of England.