Yale, Halliburton, Gates Foundation Listed as Chrysler Lenders

[Joanne98]

Source: Bloomberg


May 2 (Bloomberg) -- Chrysler LLC’s 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 carmaker’s bankruptcy shows.

Chrysler, the nation’s 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 Chrysler’s 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 LP’s 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 government’s offer, as were Los Angeles-based TCW Group Inc. and Schultze Asset Management LLC of Purchase, New York.



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