And so the next casualty of the inevitable municipal collapse appears, which is, as expected, that one-time symbol of all that was right with a (once upon a time) manufacturing America, having since been replaced with the anti-symbol of all that is broken: Detroit. DETROIT BEGINS MORATORIUM ON ALL DEBT SERVICE PAYMENTS FOR UNSECURED FUNDED DEBT; DETROIT TO DEFAULT ON CERTIFICATES OF PARTICIPATION DUE TODAY. And, true to from in the New Normal America, where the "fairness doctrine" rules supreme under Big Brother's watchful eye, the premise of the upcoming glorious recovery is a well-known one: "the shared-sacrifice." To wit: "The City currently faces approximately $17 billion in total liabilities. Detroit is insolvent and cannot meet its financial obligations without a significant restructuring. Mr. Orr's plan provides for shared sacrifice among all creditor groups – from Wall Street and Main Street consistent with their legal rights – in order to return Detroit to a sustainable financial foundation and to permit much-needed reinvestment in the City." The punchline: "Detroit's road to recovery begins today"... By defaulting.
- HOSTESS JUDGE APPROVES MOTION TO WIND DOWN COMPANY
- HOSTESS WINS APPROVAL TO CLOSE AND BEGIN SELLING ASSETS
Next up: the Twinkie economy.
Borders Hires Jefferies As Restructuring Financial Advisor, Jones Day Is Legal Firm, Another Wipe Out For Ackman ImminentSubmitted by Tyler Durden on 01/06/2011 17:35 -0400
At one point last year Bill Ackman, who had created an entirely separate fund to express his exbuerance in retailer Target, and created a standalone fund PSIV to invest in the same name, was down 99% at the point the fund was unwound. Many had hoped the supposed retail genius' bad luck would end there. Alas, no. Another stock in which Pershing Square now owns 37%, is on the verge of filing bankruptcy. And apparently it can't even afford to hire a decent financial restructuring advisor. According to reports, traditionally creditor-side advisor Jefferies has been retained to represent the company, while Jones Day is legal counsel. Look for a bankruptcy filing in the next week and for another wipe out for Mr Ackman.
Chrysler's little parade in bankruptcy court to make sure a few hundred thousand unionized workers retain their jobs for another year or two is finished. And here is the bill to you, dear taxpayer (or rather the first of many): Jones Day's invoice is in the mail. Everyone take out their wallets and please split the $12,702,190.19 equally. After all, now that we are allbenefiting form having a much leaner, much more competitive Chrysler around, we should all be happy to pay each and every lawyer who made it possible.
In its retention application to represent the Debtor, aka Chrysler, aka US taxpayers, bankruptcy law firm Jones Day has disclosed not only its fee rates (at or over $900/hour for the top lawyers, compliments of Joe Q. Public), but also a very peculiar phrasing in the request of where in priority its fees should fall in the current bankruptcy. For the first time since once can remember, a law firm has requested a Section 364 superpriority status as a retained entity.