More on Chrysler and Offers You Can’t Refuse

James Gattuso / May 04, 2009

Did the White House threaten a Chrysler creditor who refused to sign on to the rescue plan brokered by the government? That’s the charge levelled on Friday by a lawyer for the holdout creditors. In an interview with a Detroit radio station, attorney Thomas Lauria said that the investment firm Perella Weinberg Partners dropped its opposition to the plan after it “was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under threat that the full force of the White House press corps would destroy its reputation if it continued to fight.”

The White House is denying the charge, as is Perella Weinberg. Interestingly, however, Perella — in denying that it was threatened — does concede that the decision was made due to political pressure and not just financial considerations. (more…)