Fund Managers to avoid lending to Union Shops

Discussion in 'Economics' started by lrm21, May 21, 2009.

  1. lrm21


    Fund Managers Burned by Obama Now Say They Are Wary (Update3)

    May 20 (Bloomberg) -- Hedge fund manager George Schultze says he may avoid lending to any more unionized companies after being burned by President Barack Obama in Chrysler LLC’s bankruptcy.

    Obama put Chrysler under court protection on April 30 after lenders balked at a proposal giving them about 29 cents on the dollar for their $6.9 billion in debt. The investors said the president’s plan favored a union retiree medical fund whose claims ranked behind them for repayment. It was offered a 55 percent equity stake in the automaker.

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