MutualFundWire.com: A Fund Firm Fights Back Over Chrysler Bankruptcy
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Friday, May 1, 2009
A Fund Firm Fights Back Over Chrysler Bankruptcy
As Chrysler's future teeters, at least one mutual fund firm is pushing back against the Federal government's plan asking the automaker's secured lenders to accept a fraction of what they're owed. On Thursday OppenheimerFunds released a statement defending its actions regarding the beleaguered automaker.
"OppenheimerFunds rejected the government's offers because they unfairly asked our fund shareholders to make financial services greater than those being made by unsecured creditors," the statement reads. "We are obligated to our fund shareholders to support agreements that respect these laws."
The Wall Street Journal's Serena Ng and Annelena Lobb report that the OppFunds statement came as a response to remarks on Thursday by President Barack Obama, who attacked the "small group of speculators" who will "endanger Chrysler's future" because they held out.
Company Press Release
April 30, 2009 -- OppenheimerFunds, Inc. shares the goals of all Chrysler stakeholders seeking to strengthen the automaker.
As a member of the Chrysler creditors’ steering committee, OppenheimerFunds represented the interests of the thousands of small investors and their retirement plans that make up the majority of our mutual funds shareholders.
At all times in the negotiations, OppenheimerFunds sought fair treatment for the shareholders of our funds and we were willing to make very significant sacrifices to reach an agreement. Along with more than 20 other secured creditors, OppenheimerFunds rejected the Government’s offers because they unfairly asked our fund shareholders to make financial sacrifices greater than those being made by unsecured creditors. Our holdings in secured Chrysler debt are entitled to priority in long-established US bankruptcy law and we are obligated to our fund shareholders to support agreements that respect these laws.
Contact: Bruce Dunbar, OppenheimerFunds, Inc. 212.323.0291
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses contain this and other information about the funds. You may download and view a prospectus now, or to obtain one, ask your financial advisor or call OppenheimerFunds Distributor, Inc. at 1.800.525.7048. Read prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008
Printed from: MFWire.com/story.asp?s=21459
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