Monday, May 4, 2009

Non-TARP Chrysler Lenders Win A Delay In Bankruptcy Hearing

Posted on the Business Insider by John Carney:

The Chrysler lenders who have opposed the Obama administration's restructuring plan for the Detriot automakers won their first fight in bankruptcy court today. Bankruptcy Judge Arthur Gonzalez delayed a hearing on Chrysler's plan to sell its assets to a new Chrysler-Fiat partnership after the lenders argued that they had only had a few hours to review the plan. The hearing on the plan will be rescheduled for tomorrow afternoon.

Today's hearing was the beginning of what could become an ugly fight over the fate of the automaker. Chrysler had said it would file its plan on Friday. But the plan wasn't entered into the court's computer system until Sunday night.

Gonzalez will now begin hearing the plan at 2:30 p.m. Tuesday, the Detriot Free Press is reporting.

In addition, the lawyer for the dissenting lenders has asked that the identities of some lenders be kept secret because there have been death threats against senior creditors. Tom Lauria, the White & Case attorney, said some members of the group he represents have asked to remain anonymous.

"People who have been identified publically of the first lien debt in this group have received death threats, which they perceived as bona fide," Lauria said. Oppenheimer Funds and Stairway Capital are the two prominent funds known to oppose the plan.

No comments: