UPDATE 3-Chrysler holdouts must say who they are, judge says

Tue May 5, 2009 11:57pm BST
 
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* Judge rules Chrysler lenders must name themselves

* Dissidents say sale process discourages open bids

* Dissident lenders call for judge to block or alter sale

* Creditors' committee chooses Kramer Levin as lawyers (Updates with judge's decision, court hearing, creditors)

By Emily Chasan and Chelsea Emery

NEW YORK, May 5 (Reuters) - A small group of Chrysler's lenders who have objected to the Obama administration's plan for a quick dash through bankruptcy must identify themselves, in spite of death threats, a U.S. judge ruled on Tuesday.

Judge Arthur Gonzalez, who is overseeing Chrysler's bankruptcy case in Manhattan, said that the lenders must disclose their identities on Wednesday morning, leaving open the possibility that some may change their minds.

"These lenders do not have grounds for (their identity) statement to be sealed," Gonzalez said at the court hearing, saying threats on the Internet did not meet the bar for such a request and that concerns about reputational harm were not subject to protection by the court.

In court papers filed earlier on Tuesday, the group of lenders said they were being blamed unfairly for Chrysler's failure amid a political backlash. Tom Lauria, the lawyer representing the lenders, said that a public disclosure of the identities of the funds would "force several of these lenders to surrender their legal rights and agree to the government's illegal plan."  Continued...

 

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