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Yale, Halliburton, Gates Foundation Listed as Chrysler Lenders

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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 06:24 AM
Original message
Yale, Halliburton, Gates Foundation Listed as Chrysler Lenders
Source: Bloomberg


May 2 (Bloomberg) -- Chrysler LLCs secured lenders included Yale University, Oaktree Capital Management and assets managed for the University of Kentucky, Halliburton Co., Kraft Foods Master Retirement and the Bill and Melinda Gates Foundation, a court filing in the carmakers bankruptcy shows.

Chrysler, the nations third-largest automaker, filed for Chapter 11 protection after a group of 20 Chrysler secured lenders calling itself the Committee of Chrysler Non-Tarp Lenders rejected an offer by the government that would have paid them $2.25 billion on $6.9 billion of debt, or 33 cents on the dollar.

The government plans to ask the bankruptcy judge to let it pay the creditors in that group $2 billion, or 29 cents on the dollar, to end their claims.

A group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout, President Barack Obama said April 30 in Washington before Chryslers bankruptcy filing.

The list of more than 100 secured lenders, filed in the U.S. Bankruptcy Court in Manhattan, includes those that initially declined the government offer as well as others, including the U.S. Treasury.

Dissident Group

Some investors, including OppenheimerFunds Inc. and Perella Weinberg Capital Management LPs Xerion hedge fund, bought the debt of the automaker before last July. On June 30, Chrysler auto loans were trading at about 49 cents on the dollar. Xerion, run by Daniel Arbess and OppenheimerFunds, both based in New York, and Stairway Capital Advisors, based in Uniondale, New York, were all part of the group that declined the governments offer, as were Los Angeles-based TCW Group Inc. and Schultze Asset Management LLC of Purchase, New York.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a10...
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Jeep789 Donating Member (935 posts) Send PM | Profile | Ignore Sat May-02-09 06:30 AM
Response to Original message
1. Interesting. nt
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Dont_Bogart_the_Pretzel Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 07:54 AM
Response to Reply #1
3. Interesting indeed...
I hope this news comes out if Micro$oft ask for bail-out...

Greedy bastards....

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Psephos Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-03-09 02:13 AM
Response to Reply #3
11. You don't seem to realize the Gates foundation is a major philanthropic entity
It has nothing to do with Microsoft's interests and is not responsive to Microsoft's business needs.

You can read up on it here:

http://www.gatesfoundation.org/Pages/home.aspx
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Dont_Bogart_the_Pretzel Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-03-09 09:37 AM
Response to Reply #11
13. I knew that....
But a lot of people you ask on the street will tell you Gates(Bill) is, and always will be Microsoft and their are some people doesn't know about the Gates Foundation.
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 06:40 AM
Response to Original message
2. Auto industry employees and well wishers, take note. K & R.
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xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 08:36 AM
Response to Original message
4. recommend
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Optical.Catalyst Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 09:04 AM
Response to Original message
5. Kicked and Recommended
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brentspeak Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 09:27 AM
Response to Original message
6. It's not even accurate to call them "lenders"
They are speculators; they purchased Chrysler's debt on the secondary market.
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Half King Donating Member (27 posts) Send PM | Profile | Ignore Sat May-02-09 10:55 AM
Response to Reply #6
8. As are almost all
stockholders. Not many people have the ability to purchase an IPO, nor do they have access to initial bond offerings. So, from your definition, there are very few "investors", almost everyone is a "speculator".
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brentspeak Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 11:39 AM
Response to Reply #8
9. Stockholders are not usually referred to as "lenders"
Edited on Sat May-02-09 11:55 AM by brentspeak
But secondary-market debt-holders are routinely designated as "lenders" - a completely misleading label, as they actually never lent a dime to the entities in question in the first place.
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Sgent Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-03-09 03:02 AM
Response to Reply #9
12. Nope
They provided a market of freely tradeable debt so that Chrysler had to pay much less than they would have otherwise. Commercial bank loans are much more expensive because they are nontransferable(or much harder to transfer).
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Alcibiades Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 09:57 AM
Response to Original message
7. They bought Chrysler's debt at 49 cents on the dollar
They should not therefore be surprised that it is now worth less. If something's trading at half the face value, you should say "hm, maybe this is risky." They made a bet and lost. They should be glad they are getting anything--in a casino, if you lose a bet, they take then entire wager!
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robinlynne Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 11:41 AM
Response to Reply #7
10. And, if they paid 49cents, and want 1.00 they want more than TWICE what they
paid for it!!!! Let's see, I lost half (+-) of my savings during the same time period, am not trying to weasel the money I lost out of other people's pockets. And i did not buy a debt. I bought mutual funds....
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