That was a sweetheart deal that the the UAW, an unsecured creditor, got on the Chrysler restructuring; they ended up with 55% of the company, while secured creditors (in law, higher up on the food chain) received 29% of the value of their bonds. And look at some of who suffered from the Thug-in-Chief being on the side of the UAW, sidestepping existing bankruptcy law. From the May 21, 2009 Wall Street Journal:
Not surprisingly, Mourdock is no longer investing public funds in similar bonds where the prospect of political interference with the process may injure the bondholders. Obama and his thugs seem to be a curious mixture of progressive rhetoric and better spoken organized criminals. I sure hope that all those wealthy people who voted for him just to provie how unracist they were have learned their lesson.Indiana Treasurer Richard Mourdock revealed this week that his state's police and teacher pension funds have lost millions of dollars in the Chrysler "restructuring." Indiana's State Police Fund and Major Moves Construction Fund, which finances roads and bridges, together lost more than $1 million. And the Teacher's Retirement Fund "suffered, at a minimum, a loss of $4.6 million due to the action of the Federal government," reports Mr. Mourdock.
Far from being speculators, these funds represent retired public employees, including cops and teachers. The funds paid a premium to buy "secured" status, only to discover that they were politically outranked by the United Auto Workers in the White House hierarchy.
"In the past, to be 'secured' meant an investor was 'first in line' in the event of a bankruptcy and 'non-secured' creditors would receive value after secured-creditors were paid," Mr. Mourdock says. "In the Chrysler bankruptcy, however, secured creditors received $.29 on the dollar even as non-secured creditors received higher values and ended up with a 55% ownership of the new company, which is fundamentally wrong and a dangerous precedent to the capital markets."
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