Market Minds

Now that the issue of those pesky first lien hold outs has been dealt with once and for all, the Chrysler saga audience can turn their attention to the more relevant question of how the bankruptcy will actually affect not only upstream suppliers’ production and their employment levels, but the overall domestic and global economy. In order for readers to grasp the magnitude of the 2nd and 3rd derivatives of this implosion, I republish the most recent docket notification list , which demonstrates just how many entities have an immediate vested interest in this case. Publish at Scribd or explore others: More relevantly, the question arises of just what all the Chrysler posturing will imply for the process of the inevitable GM bankruptcy, which as of today is a mere 3 weeks away. If the Chrysler case study is any indication, the administration will once again put the blame solidly on any and all investment fiduciaries (i.e. ad hoc bondholder committee) who are unwilling to relinquish absolute priority, which is not surprising. What is paradoxical, as was in the Chrysler case, is that the administration needs bankruptcy in order to cancel and amend existing contracts, full stop

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Will The Real Chryslergate Fallout Please Stand Up