s skippy the bush kangaroo: is cerberus doing the same thing to chrysler

skippy the bush kangaroo



Saturday, December 27, 2008

is cerberus doing the same thing to chrysler

as they purposely did to mervyns?
“cerberus capital management lp and a group of private equity investors bought mervyn’s from target corporation in 2004 for $1.25 billion. the investor group, which structured the buyout as two separate purchases – one for retail operations and one for the chains valuable real estate holdings, has earned more than 250 million in profits…the mervyn’s store chain, by contrast, is in liquidation…”

by stripping out mervyn’s valuable real estate, selling premium parcels and then leasing its own buildings back to the store at exorbitant rates, cerberus guaranteed a big profit for itself and bankruptcy for mervyn’s. - california progress report
when the firms bought mervyns for $1.2 billion in 2004, they promised to reenergize the retailer. but, as it turns out, what they did was suck the life out of it. one of the first things these leveraged-buyout firms did was saddle the company with $800 million worth of debt. the new owners then promptly paid out $400 million of that to themselves in the form of dividends. - the trumpet.com
...well-connected cerberus executives john snow (former secretary of the treasury), cerberus executive dan quayle (former vice president of the united states under george bush sr.), and an army of highly-paid lobbyists will be working behind the scenes to get cerberus off the hook as quickly and cheaply as possible. so far this year, cerberus has spent nearly $2 million on lobbying, while chrysler has spent $5 million, according to senate records. - chrysler death watch
let cerberus fix the mess with chrysler....not the taxpayers.

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posted by Cookie Jill at 3:23 PM |

7 Comments:

Little Bobbie Nardelli is gonna get his golden parachute though, you betcha!!!
My Spouse worked for Home Depot for years before Bo-Bo-Bobbie took the helm...before, it was a wonderful company...after (and after he stuffed the board with his placeholder proxies) it was a thoughtless jerk of an immature drunken teen age boy.
His policies caused the company to lose and lose and lose value until the board it self asked him to leave...but he got paid millions first.. (around twenty to be approximate)

NOW he heads up Chrysler??? WTF??

I want a place in society where no matter HOW BADLY I screw up, or HOW POOR MY JOB PERFORMANCE is ...I still get paid mega bucks...
But I guess I would have to make some kind of deal with a three headed dog from hell first...huh???
commented by Blogger Essaress ; Prior of the F.C.F.J.,, 5:12 PM PST  
And BTW but sorta off topic... Did any notice that the day before yesterday Gm had it's finance division given "Bank" status by the FED??? So, really they will get more money now than they were asking for and it will be with absolutely no strings attached....
commented by Blogger Essaress ; Prior of the F.C.F.J.,, 6:21 PM PST  
John Snow was really pushing for that GMAC bank status think. Cerberus owns part of GMAC. Personally, what these CEOs have done to the Country I would consider TREASONOUS.
commented by Blogger Cookie Jill, 7:53 PM PST  
Amen ..
commented by Blogger Essaress ; Prior of the F.C.F.J.,, 8:54 PM PST  
...as a fairly with-it gearhead car guy, I strongly suspected that the ultimate demise of Chrysler was written back when Daimler-Benz became majority owner in 1998. Daimler's sale of its majority shareholding to Cerberus wasn't anything other than the sealing of the fate of the company we all used to lump under the old 'MOPAR' label back when it was the Chrysler Corporation...

The time of the Duster, the Super Bee, and the Charger Daytona is long gone, and the time of what we used to know as the Chrysler Corporation may well follow those marque models down the memory hole...
commented by Blogger Jack K., 9:27 PM PST  
I really do not disagree with you Jack...it makes me ask though..."IF" the CEO's and the Boards Of Directors are not the real culprits, if their contributions are not major and in fact very interjacent of success versus utter failure...then what the hell justifies the outrageous pay that these a-holes routinely draw???
If compensation is not comensurate to skill and ability then they are twice guilty of malfeasance AND gross negligence as well as intentionally driving the corporations overseen by them into some sort of crisis just so that their "friends" can come and suck the bones of the now dying entity...
If compensation is NOT tied to ability...then we absolutely are witnessing grand and large scale theft.. legally to be sure (thanks to lobbyists and a willing congress egged on by the visions of sugar coated nothing jobs with those lobbying firm or CEO status or at least board memberships), but theft nonetheless...
And Jack that makes me sad and angry and more than slightly impotent as to direction of action that I could take... I have no wish to see those firms die... But it seems that my wishes matter less than my blogging...
Wealth is the Big Voice here....
commented by Blogger Essaress ; Prior of the F.C.F.J.,, 10:06 PM PST  
short answer (cause the people above are so much smarter than me)

yes
commented by Blogger Distributorcap, 3:37 AM PST  

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