In a radio interview with Frank Beckmann of WJR radio in Detroit (linked below), Attorney Tom Lauria explains that the White House press corp was used to intimidate lenders.
Tom Lauria:
"Let me tell you it?s no fun standing on this side of the fence opposing the President of the United States. In fact, let me just say, people have asked me who I represent. That?s a moving target. I can tell you for sure that I represent one less investor today than I represented yesterday. One of my clients was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight. That?s how hard it is to stand on this side of the fence."
Beckman:
"Was that Perella Weinberg?"
Lauria:
"That was Perella Weinberg."
Lauria represented senior creditors that he explained originally took on a low rate of return in exchange for greater security. Legally they were entitled to be paid first before any junior creditors like the unions. However they agreed to accept only 50% of their first lien position in order to help rehabilitation of Chrysler despite having no legal obligation to do so.
These are the people Rep John Dingell of Michigan called "rouges and vultures" (and whose investors include Yale University?s endowment, the University of Kentucky?s endowment, the Bill and Melinda Gates Foundation and lots of retirement fund, smaller investors etc.)
Senior creditors were offered 29 cents on the dollar while junior creditors get full recovery value for their $10.6 billion retiree health-care claims. Obama's proposal also called for Treasury to forgive a $4 billion loan to the company in return for an 8% stake in the auto maker.
Lauria also decries 1) the executive office using its power to break legal agreements protected by Constitution (right to property and right to contracts) and 2) the executive branch encroaching on powers of the judicial branch.
Even if one allows for "cram downs" and such as allowed by bankruptcy law in some circumstances, it's clear Obama @ Co clubbed lenders like baby seals while hijacking value and transferring it to the unions (who paid for Obama) while also giving some control to itself.
Fascinating Radio Interview Here:
http://www.wjr.net/Article.asp?id=1301727&spid=6525
Tom Lauria:
"Let me tell you it?s no fun standing on this side of the fence opposing the President of the United States. In fact, let me just say, people have asked me who I represent. That?s a moving target. I can tell you for sure that I represent one less investor today than I represented yesterday. One of my clients was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight. That?s how hard it is to stand on this side of the fence."
Beckman:
"Was that Perella Weinberg?"
Lauria:
"That was Perella Weinberg."
Lauria represented senior creditors that he explained originally took on a low rate of return in exchange for greater security. Legally they were entitled to be paid first before any junior creditors like the unions. However they agreed to accept only 50% of their first lien position in order to help rehabilitation of Chrysler despite having no legal obligation to do so.
These are the people Rep John Dingell of Michigan called "rouges and vultures" (and whose investors include Yale University?s endowment, the University of Kentucky?s endowment, the Bill and Melinda Gates Foundation and lots of retirement fund, smaller investors etc.)
Senior creditors were offered 29 cents on the dollar while junior creditors get full recovery value for their $10.6 billion retiree health-care claims. Obama's proposal also called for Treasury to forgive a $4 billion loan to the company in return for an 8% stake in the auto maker.
Lauria also decries 1) the executive office using its power to break legal agreements protected by Constitution (right to property and right to contracts) and 2) the executive branch encroaching on powers of the judicial branch.
Even if one allows for "cram downs" and such as allowed by bankruptcy law in some circumstances, it's clear Obama @ Co clubbed lenders like baby seals while hijacking value and transferring it to the unions (who paid for Obama) while also giving some control to itself.
Fascinating Radio Interview Here:
http://www.wjr.net/Article.asp?id=1301727&spid=6525
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