Seeking Profit as a "Dissident" Position. Welcome to Obama's America. GM Bondholders Next

The other day Obama using the hate speech which so typifies left wing thing attacked Americans who wanted to see their investments make a profit. Two in particular Peter A. Weinberg and Joseph R. Perella were target by our President. The issue is the despicable deal the White House is orchestrating to create a state run and state supported auto industry whose key job will be to donate money to democrats and ensure votes for the Democratic Party Machine.


Their stance is worthy of note:

“The government has risked overturning the rule of law and practices that have governed our world-leading bankruptcy code for decades,” the group said in a statement Thursday. The creditors suggested banks that had received bailout money were being strong-armed by the administration, a view some of the bankers privately said they shared.

Apparently Obama's thuggish behavior was worse then I thought, Via HA:

An attorney representing several Chrysler bondholders accused the Obama administration of intimidating his clients by issuing threats of public humiliation if they opposed their brokered deal to resolve the automaker’s debts. Speaking to WJR, Thomas Lauria said that the White House called the bondholders “vultures” for insisting on their rights as senior creditors and told them that the Obama administration would use the White House press corps to attack them in the media. Corky Boyd has the transcript:

Lauria: Let me tell you it’s no fun standing on this side of the fence opposing the President of the United States. In fact, let me just say, people have asked me who I represent. That’s a moving target. I can tell you for sure that I represent one less investor today than I represented yesterday. One of my clients was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight. That’s how hard it is to stand on this side of the fence.

Beckman: Was that Perella Weinberg?

Lauria: That was Perella Weinberg.

Stay strong, you are right. Up next will be the decision of the GM bondholders, I am sure the banks will be forced to follow Obama's law, what about the rest.

GM wants investors holding $27.2 billion of the company's bonds to swap them in exchange for 10 percent of the equity shares of the restructured company. The United Auto Workers would get up to 39 percent of the company in return for half of the $20 billion GM owes to a health fund for retired workers. Current shareholders would get 1 percent of the new shares.

The Treasury said that to meet restructuring goals and to fulfill bond covenants, the restructuring proposal must win the support of 90 percent of GM's bondholders, a questionable proposition, considering many of them dismissed the offer as "neither reasonable nor adequate." GM chief executive Fritz Henderson has said if the bondholders reject the terms, the company most likely would declare bankruptcy, plunging suppliers, workers and customers into deeper uncertainty.

Currently, GM bonds are selling for about nine cents on the dollar. As the holders of those bonds consider the offer to swap them for an equity stake in the company, a key calculation is how the value of the bonds compares to the stock they would receive in exchange.

Some bondholders believe that the current government offer amounts to less than nine cents on the dollar. If the holders of more than 10 percent of the remaining bonds feel the same, they likely could force GM into bankruptcy.

The pressure that will be brought by Obama against these people will be unbelievable.