Chrysler bankruptcy triggered by Peachtree City native

sniffles5's picture

a 41-year-old hedge fund manager named Geoffrey Gwin, who was born and raised in Peachtree City, was responsible for triggering the Chrysler bankruptcy today.

Gwin's Group G Capital hedge fund bought up Chrysler's debt at pennies on the dollar, hoping that a federal bailout would make them rich.

The government offered creditors 30 cents on the dollar, even to junior creditors like Group G (who theoretically stood to lose everything). All the big players agreed, but Group G and 2 other vulture funds played hardball. They bet that President Obama wouldn't want to look bad after last night's press conference (where he insisted the Chrysler bailout deal due today looked good) and said 60 cents on the dollar or no deal.

The government said no deal.

So now Chrysler will be forced into bankruptcy because a pissy little Peachtree City native wouldn't play ball.

He's purportedly "anguished" by this decision, but said that he recalls growin' up here in the Delta pilot ghetto how his daddy's Delta pension got wiped out so he doesn't have a lot of sympathy for Chrysler workers.

LINK (may have to watch commercial to view)

*Edited to add* It's getting interesting. Wall Street insiders are not too happy with Gwin's public posturing, and are predicting a run on his $200 million hedge fund as early as tomorrow morning (May 1)! LINK

sniffles5's blog | login to post comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Chrysler bankruptcy has led
Submitted by petty on Thu, 07/30/2009 - 10:45pm.

Chrysler bankruptcy has led to sad tale. It all begins with the slow downfall of Chrysler that succumbed to bankruptcy after experiencing a sales decline of 48% in cars and car parts (such as shocks, car mats, water pump, etc.)

login to post comments
Chrysler
Gene61's picture
Submitted by Gene61 on Fri, 05/01/2009 - 1:34am.

I am not going to write off Chrysler myself.. They have been down this path before and came out the other side a well oiled machine. Chrysler will survive and in the end hopefully come our leaner and meaner.

The losers will be the hedge funds who would not play ball. When JP Morgan can agree to to a hit to keep the company from going under, the little greddy hedge fund babies should have taken note. I own a Chrysler product, and always thought the company was ahead of its time wih some of the products thet were coming out of the designers we noce looking cars & trucks. I drove GM products, and a few Ford products, I'll keep my Dodge Charger over those brands..

The losers will be the dealers who will be forced to close, when Chrysler down sizes its stores.. But they will be alone, GM dealers are in for the biggest shock og all, when 42% of its dealer network is dissolved. I look for certain Chrysler models to end up being scrapred, but unlike GM I don't thnk we'll see any Chrysler brands being closed down. GM will close Pontiac down, since they have damaged that brand beyond repair.Then by the end othe year, Saturn and Hummer will be only memories, times are changing..


login to post comments
There were those that said Studebaker would....
Cyclist's picture
Submitted by Cyclist on Fri, 05/01/2009 - 9:15pm.

never fail.

The Studebacker Wagonaire
-------------------------------------------
Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.


login to post comments
Gwin
aliquando's picture
Submitted by aliquando on Fri, 05/01/2009 - 12:52am.

If not us, then who? I went to high school with the guy. He is a certified dillweed! He was arrogant then and apparently still has that going for him.


login to post comments
Arrogant....and not so smart
sniffles5's picture
Submitted by sniffles5 on Fri, 05/01/2009 - 11:52am.

Your buddy Gwin appears not particularly ready to swim with the sharks!

Bloomberg is reporting this morning that yer boy genius Gwin invested majorly in Chrysler at 50 cents to 70 cents on the dollar to buy up their existing debt, gambling hugely that a govt. bailout would pay off big profits.

When the government announced it would pay 30 cents on the dollar to bondholders (later increased to 33 cents), boy genius was going to take a huge loss....that's why he held out to the bitter end "on principle" for his lousy 60 cents on the dollar....because that's what he paid for it in the first place (on average)


login to post comments
not my buddy
aliquando's picture
Submitted by aliquando on Fri, 05/01/2009 - 8:24pm.

He is definitely not my buddy, just knew him back in the day. His older brother seemed to be a good egg.


login to post comments
Good bye Chrysler, Hope you had a good Ride!
Submitted by Dondol on Thu, 04/30/2009 - 9:00pm.

"He's purportedly "anguished" by this decision, but said that he recalls growin' up here in the Delta pilot ghetto how his daddy's Delta pension got wiped out so he doesn't have a lot of sympathy for Chrysler workers."
You Won't find sympathy here coming from an airline family. Delta and United employee's are going to be lucky to get 28% of their pensions after working for 20-30 years and the new Democratic regime is going to give Chrysler's UAW workers their whole pension for a campaign payoff. I just love their concessions to, instead of being paid 95% if they are laid off they now get to set home and collect 50% of their salary. Now that's got to be tough. It's no wonder why the American auto companies are all going to Hell. Good Riddance!

Obama's weapon of Choice!

login to post comments
sniffles,
Cyclist's picture
Submitted by Cyclist on Thu, 04/30/2009 - 8:48pm.

Good research!
-------------------------------------------
Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.


login to post comments
Just lucky...
sniffles5's picture
Submitted by sniffles5 on Thu, 04/30/2009 - 9:00pm.

I've been following the Chrysler story because it indirectly affects my line of work, and was reading Salon tonight when they started talking about PTC, a random jaw-dropping moment.

Haven't had a jaw droppin' moment like that since I watched the Chic-fil-a bowl on TV and realized the guy presenting the winners trophy at the end of the game was the president of my high school class.


login to post comments
So, what happens now?
Submitted by FayetteFlyer on Thu, 04/30/2009 - 8:40pm.

With the inevitable bancruptcies of at least two of the Detroit 3, it begs the question, what happens to all those billions they got from the gov't, i.e. taxpayers? Never mind, 'cause it's really a rhetorical question anyway!

login to post comments
See ya Chrysler.........RUST IN PEACE....
Submitted by mysteryman on Thu, 04/30/2009 - 8:13pm.

And nobody wants a rehashed K-CAR with a Fiat engine....Rust in Peace....BLESS

login to post comments
I like my Dodge Ram.
aliquando's picture
Submitted by aliquando on Fri, 05/01/2009 - 8:25pm.

If not us, then who?


login to post comments
momma mia....
Cyclist's picture
Submitted by Cyclist on Thu, 04/30/2009 - 8:47pm.

that would be some kind of car.
-------------------------------------------
Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.


login to post comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.