"Meet the Chrysler 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 administration’s 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 “speculators,” even as the creditors argued that they were being treated unfairly under the government’s plan.
The majority of the holders of Chrysler’s $6.9 billion in senior secured debt, a group led by JPMorgan Chase, has agreed to accept the government’s proposal and take a big loss on their holdings.
The lawyer representing the holdout creditors, Thomas E. Lauria of White & Case, argued in court that because his clients had received harassment and death threats, they needed to submit what’s known as a 2019 statement under seal to protect their identities.
But the judge, Arthur J. Gonzalez, ruled Tuesday that the creditors could not benefit from court protection of their identities simply because they were taking an unpopular position.
Some members of the holdout group, Stairway and Oppenheimer, had already been identified. Others have withdrawn from the group since the Chapter 11 case began.
Below, the document identifying the remaining members: