OT - Regarding Chrysler bondholders holdout

------- Even more to the point, why should they settle when they have a CDS written by AIG on their debt, and/or have secured debt with the land, buildings, machinery, etc. as collateral?

Like they said in the Godfather, "It ain't personal, its business."

As I understand it, Chrysler hocked everything but the staplers in the office, and all of the real "assets" of any consequence are "collateral" for one loan or another (in addition to the huge amounts of unsecured "signature" loans with Citi, BoA, Chase, etc.), thus FIAT will have to buy, not steal, the manufacturing plants.

The UAW may indeed get 55%, but 55% of nothing is still nothing.

Unka' George [George McDuffee]

------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).

----- This is a key point. How can you start production back up when your sole-source supplier just went bk?

Unka' George [George McDuffee]

------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).

F. George McDuffee wrote in news: snipped-for-privacy@4ax.com:

You get another one. It's a big world and as PT Barnum said...

JC

I just want to see the UAW run a business. It should be good for laughs.

Wes

Boards of directors don't "run" bussiness Wes, they tell the Officers of the company where they want to see the enterprise move.

JC

If they get 55% of the shares, they effectively control the company. We can get into semantics about run and direct but ultimately, the UAW will have a very large say in how Chrysler operates.

I'm chuckling that the typical tactics a union uses to pit labor against management are going to have to go out of the window when the union, mighty mighty union is labor and management.

Wes

snipped-for-privacy@lycos.com wrote in news:PBfLl.93166$ snipped-for-privacy@en-nntp-01.dc.easynews.com:

The UAW didn't actually get 55%. The UAW Retiree Health and Pension Fund got 55%. The UAW gets to appoint 1 person to the 9 member board, but they are required to vote their share in line with the majority of the independent board members. They have no real voice in how the new company will be managed. That management will fall to the CEO of Fiat, who has done a masterful job with Fiat since he took over in 2004. I actually look for Chrysler to turn around now. They are a smaller, more agile company now. I don't look for GM to make it. They are too big, management is too cumbersome and inflexible, and management appears to have no real direction. While Chrysler has busted tail to get the deals with the Union, Majority Bondholders and Fiat done in an inordinately short amount of time, GM has lagged around with thumbs up the butt and gotten nothing of any significance done. It's like they are waiting on the Taxpayers to just give in an fork out a ton more cash. I don't think the big O is going to do that. If they can't come up with an actually viable plan, I'm figuring a Ch 7 for them and let the sharks buy up what parts they want. GM has been in major trouble for years, they have just hid it fairly well.

Ford will come out of this whole thing smelling like a rose and making cash. They got their crap together a few years ago, have a vision and a viable plan and are executing it very well and building extremely high quality vehicles that customers actually want. I wouldn't be suprised if they bought some of the liquidated assets of GM when it goes belly up.

D Murphy wrote in news:Xns9BFFD05D46610BW12BU20MU38SY@69.16.185.250:

Not to argue Dan, but the Union isn't getting 55 cents on the dollar. The Retirement and Health fund is. While it is somewhat managed by the UAW, it's a wholly independent entity. Most folks (including the mainstream media) fail to note this fact.