Auto Industry Update

Well Chrysler had gone Chapter 11, because of the unwillingness of a number of the smaller creditors to negotiate in good faith.

Those folks are actually better described as hedge funds, and knowing how hedgies work, they doubtless bought debt at a discount for the express purpose of holding it for ransom.

Here is hoping that the BK judge cleans them out.

Meanwhile, back in GM land, its bondholders have made a counter-offer, wanting a 58% stake in the firm, as opposed to the 10% stake offered, so there is a big gap to bridge there too.