It looks like the “surgical” 30-60 day bankruptcy may be a go.
Late last night, after a marathon session in court, Judge Arthur Gonzalez basically approved the plan to merge Chrysler into Fiat, rejecting the claims from the senior secured (though minority) bondholders.
The judge rejected claims that the sale was unfair, and said the only way the deal will be derailed is if some dark horse comes in and makes a bid for Chrysler’s assets in excess of Fiat’s offer. To whatever extent the specific hedge funds in this case — or hedge funds as a whole — have taken a reputational hit by not going along with Obama’s plan, it appears that the gambit to push Chrysler into bankruptcy is pretty much a total flop.
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