Six Flags Ad Hoc Bondholders Preparing For Big Valuation Fight

Even as Six Flags’ OCC (Official Credit Committee) was being formed in Delaware last Friday, with naive participants such as BoNY, HSBC, Esopus Creek Capital, Schottenfeld Associates, John Gorman, Whirley Drink Works and Coca-Cola (the last two must be royally pissed as all their advance profits on $9.95 small cups of soda have just become [...]

More Luxury Retail Failures, Buffett On Green Shoots

eLuxury is finished – another example of the retail collapse starting to reach ever higher into the “aspirational” segment. In other news, Warren Buffett who is currently munching on filet mignon at Smith & Wollensky in NY, was joking that he had cataract surgery a month ago to help him see the green shoots better [...]

Ohio Attorney General Objects To GM Sale: "Franchise Contract Changes Are Unlawful"

Trust GM to try to slide a fast one. In an attempt to get all the dealers who did not receive the “thin letter” to get on board with the restructuring process, the bankrupt automaker had sent to the surviving dealers highly secretive amended Participation Agreements (presented below) with extensive “No Protest” clauses, which would [...]

GM Dissident Bondholders File Objection To 363 Sale

Today the Unofficial Committee of Family and Dissident GM bondholders filed an objection to the 363 sale (link here). And any objection that starts with a quote from our current President’s inaugural address promises to make for an interesting read: this one does not disappoint. The committee brings up a plethora of valid points, most [...]

Six Flags: Bankruptcy Edition

Zero Hedge would like to share with readers the latest and greatest from Six Flags, whose bankruptcy seems to have had no impact on corporate-blogger relations: Hey Tyler , I hope this email finds you well…it’s xxxx again with the latest update We know that you and many of your readers have been seeing the [...]

Random Walk Down Madison Avenue’s Golden Mile

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Fontainebleau Fiasco Soon To Get Epic

And some thought yesterday’s bankruptcy of LV casino Fontainebleau would be the end of it. Today a new lawsuit has erupted, this one seeking unspecified damages from a variety of defendants, most prominently Bank of America. According to the Las Vegas Sun: Bank of America and other banks, already accused by Fontainebleau of wrongly shutting [...]

Dealership Closures: Not So Fast Says The New Boss, Aka The USA

Yesterday Congressmen Dan Maffei (NY-25) and Congressman Frank Kratovil (MD-1) introduced Bill HR 2743 called the “Automobile Dealer Economic Rights Restoration Act of 2009″, which aims at “requiring Chrysler and General Motors to continue to honor their commitments to auto dealers.” Not sure if this should be read as the first step of the bailout [...]

Fontainebleau Las Vegas Files For Bankruptcy

The $3 billion Las Vegas casino which Zero Hedge discussed at length previously (must read for anyone curious how big banks now decide which companies get to live or die), has thrown in the towel. Deutsche Bank’s strong arming tactics have won yet again: that other bloated monstrosity, the Cosmopolitan, will now be safe knowing [...]

Supreme Court Clears Chrysler Sale

Ginsburg denies application for stay. For commentary, check out SCOTUSblog. Insisting that it was denying a postponement “in this case alone,” the two-page order said the challengers had not met their burden of showing that a delay was justified. The order allows a closing of the deal as of next Monday, because it lifts a [...]

Gonzalez Approves Chrysler Dealer Termination Plan

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Fiat Furiously Backpedalling

In the greatest diplomatic gaffe since Bush Sr. vomited all over Japanese PM Miyazawa, Fiat has sisued a brief with the Supreme Court, claiming what it said yesterday is actually not what it meant. Whatever commitment Fiat may have to provide the industrial support and management expertise required to restore Chrysler to viability, any further [...]

GM Asbestos Claimants Say Sale May Be Unconstitutional

Impaired claimant groups are gradually starting to get smart about what ultra-fast 363 auto sales imply for them – nothing good. The latest development in the GM case involves the company’s asbestos-injury claimants, as the Detroit Free Press reports. The group has requested official committee representation in the GM case as it believes the GM [...]

Chrysler Dealers Summary Arguments

The consolidated group of objecting Chrysler dealers has filed a summary in the Chrysler docket summarizing every single objecting party’s pleadings. Very useful reading, which makes it easy to track what grounds any particular dealers believes the company/administration has wronged him/her on. Of course, way too late in the case to have a bearing on [...]

Supreme Court Stays Chrysler Deal

Developing Story. Liquidation for Chrysler after Fiat bounces asap? Supreme Court Justice Ruth Bader Ginsburg put a temporary hold Monday on the deal to sell Chrysler to save it from collapse. Her order, however, simply gives her or the full Court more time to ponder whether to postpone it further, or allow it to go [...]

Chrysler Sunday Evening Update

Update 1: Chrysler just filed its response to the Indiana appeal. The biggest variable here is the value that Chrysler assumes the first lien lenders would attain in a liquidation which at $800 million, Jones Day claims would be a far worse outcome than the $2 billion the secured lenders are guaranteed under the current [...]

Chrysler Supreme Court Stay Application

The Indiana Pensioners’ Supreme Court Stay Appeal presented below. Oddly, on page 6 the Indiana Pension Funds have for the first time noted that their first lien holdings are $100 million, whereas in all prior disclosures they noted it was $42 million. Does this number include the Oppenheimer face holdings? Otherwise it seems like a [...]

I Know My Own Needs

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Live Transcripts Of Chrysler Terminated Dealers Hearing

The files below are the court recordings from today’s terminated dealers objection hearing. We have not had a chance to go through them yet. We would advise readers to focus on the testimony of Ethel Cook from Arkansas, whose sworn declaration previously, brought up some very interesting observations. Part 1 FileDropper Free File Hosting Part [...]

In Preparation Of The Chrysler Appelate Hearing

The three briefs filed with the Second Circuit are provided below. Reminder: the appeals hearing will be tomorrow at 2:00pm at the Appelate court at 500 Pearl Street. If the hearing does not result in an outright rejection of the appeal, this could have historic precedent as it unlocks a chain of events which would [...]

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