Tuesday, May 5, 2009
CHRYSLER AND BLACKMAIL
The story broke over the weekend that the Obama administration threatened a investment firm that opposed the Union friendly bankruptcy plan by Chrysler. Tom Lauria represents a few of the non-TARP creditors. Tom Lauria reported the threats on the WJR Radio Host Frank Beckkmen and Neil Cavuto Show on Fox News. Tom Lauria the Head of Restructuring at the top five law firm White & Case in which the lawyer who represents Chrysler holdout "Hedge Funds" Stairway Capital and Oppenheimer discusses the on the record the amazing treatment by the White House of Perella Weinberg which initinally had a transaction holdout but after threats from the White House was forced to drop there objections and go with the administration. One of my clients was directly threatened by the White House and in essence compelled to withdraw it's opposition to the deal under the threat that the White House the full force of the White House Press Corps. would destroy his reputation if you continued to fight the deal. That was Perella Weinberg. The bond lien holders were willing to take a 50% discount on there positions, but the 71% demanded by the Administration was seen as too much. Among the Creditors are not just vulture hedge funds pensioners, teachers, Unions, college endowments and retirement plans. Finally, this shows the strong arm tactics of the White House and the power the President has in the liberal media to destroy a man life trying to protect his investors. Tom Lauria job is to get the best deal for his investors not to sell them out because the President made him a offer that he could not refuse.