Recall that only a few bondholders were holdouts.
What began last Thursday as a collection of about 20 investment firms holding a combined $1 billion in debt has dwindled to a set of five, holding a total of about $295 million. (The group apparently lost a member, since in a filing on Tuesday, it reported holding about $300 million.)
The members include three funds associated with Schultze Asset Management; Stairway Capital Management; Oppenheimer, which holds debt in two funds; Group G Partners, which has holdings in two funds; and Foxhill Capital Partners.
By opposing the Obama administrationÂs out-of-court debt restructuring plan, this group of holdout creditors has found themselves in the national spotlight. Last Thursday, as Chrysler filed for bankruptcy protection in New York, President Obama criticized the holdouts as Âspeculators, even as the creditors argued that they were being treated unfairly under the governmentÂs plan.
The majority of the holders of ChryslerÂs $6.9 billion in senior secured debt, a group led by JPMorgan Chase, has agreed to accept the governmentÂs proposal and take a big loss on their holdings.
Those who are complaining about "Obama gutting the Constitution" and using similar hyperbole on this issue need to start using some qualifiers. Only a handful are still holding out. The vast majority have accepted that they won't be first in line to pick Chrysler's carcass.
But, again, a judge is going to rule on this. It's not going to be imposed by Obama's fiat, so to speak. ;-)
We'll see how it turns out.
Cheers,
Scott.