Chrysler Opponents Unmasked
Thanks to a ruling from a US Bankruptcy judge, the dissident hedge funds that helped pushed Chrysler into bankruptcy have been unmasked. The hedge fund managers had tried to remain anonymous, citing threats on their lives. But Judge Arthur Gonzalez would have none of that excuse and ordered a lawyer for the dissidents to divulge the hedge funds’ names.
The list of dissidents is much smaller than the original 20 or so hedge funds that veoted a pre-bankruptcy deal to reduce Chrysler’s outstanding secured debt. The list of hedge funds that are still members of the opposition group calling themselves Chrysler Non-Tarp Lenders is down to just six funds. In all, the funds control $295 million of Chrysler debt, a far cry from the nearly $1 billion the original group of 20 had controlled.
The dissidents included funds managed by Schultze Asset Management, Arrow Hedge Partners, Stairway Capital, OppenheimerFunds, Foxhill Capital Partners and Group G Partners. Early on, Stairway Capital and Oppenheimer had been identified as leaders of the Chrsyler holdouts, but the others funds had not.
Group G may be the most interesting dissident of all. On the eve of the Chrysler bankruptcy, Group G principal Geoffrey Gwin was the subject of story in The Wall Street Journal, which detailed his anguish about how to vote on the Chrysler debt reduction package. In the April 30 story, Gwin said he was still wrestling with his decision, but never identified himself as a member of the non-Tarp lender coalition. Gwin tells me he joined the group after the WSJ story hit the newsstands.
Hmm. Could a WSJ follow-up now be in the works?