“President doesn’t negotiate second rounds…We’ve protected your management and board. And now you’re telling me to bend over to a terrorist like Lauria? That’s BS,” Feldman wrote.
Feldman dismissed any hopes of reaching an 11th-hour agreement that could have avoided bankruptcy for the Detroit auto maker. It’s over…I am not talking to you,” Feldman wrote to Manzo, an executive director with Capstone Advisory Group LLC.
A group of dissident lenders, holding a portion of Chrysler’s $6.9 billion in secured debt, rebuffed the Treasury’s final offer for secured lenders to exchange what they were owed for $2.25 billion in cash. President Barack Obama blamed those holdouts for pushing Chrysler into bankruptcy.
The lenders, owed about $300 million, attempted in bankruptcy court to block the sale of Chrysler’s assets to an entity-tied with Fiat SpA, but backed down shortly after U.S. Bankruptcy Judge Arthur Gonzalez ordered the lenders, known as the Chrysler non-TARP lenders, to reveal their identities.
Lauria’s law firm, however, resurfaced later in Chrysler’s Chapter 11 case to represent another holdout group of lenders: Indiana pension funds that had invested in the auto maker’s senior loans. The state pension funds have said Chrysler’s bankruptcy-restructuring plans are unconstitutional.
Monday, June 15, 2009
Obama Administration Attorney Called Mourdock's Attorney In Chrysler Bankruptcy A Terrorist
Remember a few years back when Gov. Mitch Daniels caught all kinds of flack from the Democrats for comparing House Speaker Pat Bauer's actions to those of a roadside bomber? Well, a member of the Obama administration's auto task force referred to Thomas Lauria, the attorney who represented Indiana State Treasurer Richard Mourdock's challenge of the Chrysler bankruptcy as a terrorist. The Wall Street Journal blog quotes attorney Matthew Feldman: