« Case Competition 2 - Business Intel | Main | Obama seeks to double tax law enforcement budget »

Chrysler Lenders Fight Back

The group of Non TARP Chrysler lenders that President Obama ostracized last week as merchants of greed have decided to fight back against the government's thug tactics and demand that a long tradition of bankruptcy law be the determining standard. George J. Schultze, the managing member of Schultze Asset Management, one of the targets of the president's wrath, made the following comments today:


"We don't succumb to pressure and don't agree to unfair and illegal payment schemes... "We're not conflicted by TARP money or active stress tests."

...."I'm not clear the sale will be completed because it's patently illegal," said Schultze, who is a bankruptcy attorney.

"It's an investment and one reason we went into it was because we expected normal laws to be upheld, normal bankruptcy laws that were developed and refined over decades, and we didn't expect a change in the priority scheme to be thrust upon us."

He said upsetting the order of repayment would potentially discourage lending.

"People who make loans to companies in corporate America will think twice about secured loans due to the risk that junior creditors might leap frog them if things don't work out. It puts a cloud on capital markets and the riskiest companies that need capital will no longer be able to get capital."

"What's holding it up and making it a sticky process is that junior creditors are being paid ahead of senior creditors," he said. "Junior creditors who are politically on the same side as the Obama administration."

(emphasis mine)

It's nice to see someone stand up to the bullying tactics that are at work in this bankruptcy. This is a vitally important matter that touches on issues such as the separation of powers, the rule of law and the worst sort of cronyism. The Obama administration's actions in the Chrysler bankruptcy are turning upside down fundamental tenets of liberty and property rights established by decades of judicial review. If the Chrysler non TARP creditors prevail it may mark the beginning of the end of the gross overreach of federal power perpetrated by the Obama administration in many segments of the private sector.

H/T Dealbreaker


TrackBack

TrackBack URL for this entry:
/cgi-bin/mt-tb.cgi/35596.

Comments (15)

So various liberal talking... (Below threshold)

So various liberal talking-tools on CNBC have stated that because the TARP banks have received goverment funds that the government should be allowed to control them. Yet these same characters will go to the ends of the earth to ensure that the heavily subsidized crack-whores, living in subsidized housing and receiving welfare not be tested for drugs. We all have to pay for their crack habits yet it would be "wrong and unconstitutional" to drug test them.

Therse people are pathetic.

I am so glad to hear that s... (Below threshold)
MichaelC:

I am so glad to hear that someone has decided to take a stand. I only hope that they will stick to their guns, cause the judge to see that he too must not bend to illegal pressure from the Obama administration, and hopefully by these actions, lend influence and example to others in similar straits who may have felt they were unable to withstand such pressure. Perhaps the firm that bent to Obama's strong arm tactics and folded will now reconsider.

While I don't want to get carried away and put unfounded hope in one instance of courageous action, there is certainly a dire need right now for just such decisions as this if there is any hope of putting a stop to the illegal ambitions of this quasi-criminal administration.

The US government lives on ... (Below threshold)
Aubrey:

The US government lives on borrowed money. Sending a message that you are perfectly willing to screw lenders is a bad idea. There are other ways people can invest their money and get just as good a return.

I expect these types of cha... (Below threshold)
DaveD:

I expect these types of challenges to legal precedent and basic constitutional rights will come quite frequently from this administration. It's clear what they cannot win by direct intimidation they will do so by demonizing or just try to exhaust the opposition. As was mentioned in another post on this site - and I agree - it is stunning that some of these people actually voted for Obama in the first place. These agents for investors are supposed to have the insight to be reasonably good at picking winners from losers in the market. It is clear they did not have this prescience when in came to analysizing which presidential candidates would best serve the investments of their clients long term. Unfortunately this should not have been a difficult analysis to make.

The ultimate irony would be... (Below threshold)
Andy T:

The ultimate irony would be if it turns out that the investors in the non TARP lenders included the UAW pension plan.

This assault on private equity and contract rights has dried up the PE industry. I work in that space, and people are on vacation until the fall. I have not talked to one that is willing to be part of the PPIP either.

Hey Obama, "Score one for t... (Below threshold)
GarandFan:

Hey Obama, "Score one for the rule of law". You know, the same idea you peddle when it suits your needs. Now bend over and SMILE!

"It puts a cloud on capital... (Below threshold)
glenn:

"It puts a cloud on capital markets and the riskiest companies that need capital will no longer be able to get capital." That's exactly what Obama and his band of flunkies intend. Wrecking the business environment and making everybody beholden to government is exactly what these guys have in mind.

"it may mark the beginning ... (Below threshold)
retired military:

"it may mark the beginning of the end of the gross overreach of federal power perpetrated by the Obama administration in many segments of the private sector.
"

ANd all in only 100 days.

WHere are all those folks that were yelling about Bush secretly taking care of the oil industry when here you have Obama openly taking care of his political cronies in violation of the law? WHere is the outrage?


rm - "WHere are all tho... (Below threshold)
marc:

rm - "WHere are all those folks that were yelling about Bush secretly taking care of the oil industry"

And Halliburton, can't forget about the "bloodsuckers" at Halliburton!

Besides rm, there "outrage meter" is pegged over the fact the liberal bloggers aren't getting paid their due for being lapdogs to the dems and the dem party.

"And Halliburton, can't for... (Below threshold)
GarandFan:

"And Halliburton, can't forget about the "bloodsuckers" at Halliburton!"

Marc, the left already has 'selective memory' regarding Halliburton. They seem to forgot who got a 'no bid contract' in Bosnia under Billy Joe.

OOOOOOOOO, Obama's gonna be... (Below threshold)
JJ:

OOOOOOOOO, Obama's gonna be PISSSSED

I hope he doesn't have a fa... (Below threshold)
epador:

I hope he doesn't have a favorite thoroughbred easily available for decapitation.

epadorThe Godfa... (Below threshold)

epador

The Godfather analogies are endless.

I can't make my mind up if Rahm Emanuel should be Sonny Corleone or Luca Brasi. And Tim Geithner...is he a young Michael Corleone? Or is he Freddo? The choices torment us!

I can't make my mi... (Below threshold)
marc:
I can't make my mind up if Rahm Emanuel should be Sonny Corleone or Luca Brasi. And Tim Geithner...is he a young Michael Corleone? Or is he Freddo? The choices torment us!
More like Lucy "Geithner" Mancini and Barack "Sonny" Obama.

If you get my drift.

(Satire tags NOT optional)

"Hey Pop, they're sending m... (Below threshold)
Robert:

"Hey Pop, they're sending me to Washington D.C. I'm going to learn about the tax business."
"What a maroon. What a nin cow poop."
- B. Bunny
I wonder what that job cost him?




Advertisements









rightads.gif

beltwaybloggers.gif

insiderslogo.jpg

mba_blue.gif

Follow Wizbang

Follow Wizbang on FacebookFollow Wizbang on TwitterSubscribe to Wizbang feedWizbang Mobile

Contact

Send e-mail tips to us:

[email protected]

Fresh Links

Credits

Section Editor: Maggie Whitton

Editors: Jay Tea, Lorie Byrd, Kim Priestap, DJ Drummond, Michael Laprarie, Baron Von Ottomatic, Shawn Mallow, Rick, Dan Karipides, Michael Avitablile, Charlie Quidnunc, Steve Schippert

Emeritus: Paul, Mary Katherine Ham, Jim Addison, Alexander K. McClure, Cassy Fiano, Bill Jempty, John Stansbury, Rob Port

In Memorium: HughS

All original content copyright © 2003-2010 by Wizbang®, LLC. All rights reserved. Wizbang® is a registered service mark.

Powered by Movable Type Pro 4.361

Hosting by ServInt

Ratings on this site are powered by the Ajax Ratings Pro plugin for Movable Type.

Search on this site is powered by the FastSearch plugin for Movable Type.

Blogrolls on this site are powered by the MT-Blogroll.

Temporary site design is based on Cutline and Cutline for MT. Graphics by Apothegm Designs.

Author Login



Terms Of Service

DCMA Compliance Notice

Privacy Policy