Thursday, April 23, 2009

You to Citi to Cerberus to NewPage

Dad29 has this item worthy of special attention for all in NE Wisconsin (my emphasis):
This is kind of interesting:

Chrysler owes ... lenders, which include banks such as Citigroup Inc. and J.P. Morgan Chase & Co., about $6.9 billion. But President Barack Obama and his auto team had demanded that the banks cut that to $1 billion, while gaining no equity stake in a restructured Chrysler.

IOW, Obama's boyzzz want the Banks to give Cerberus about $6Bn.

Those would be the banks which are the recipients of taxpayer money, in effect, YOU are giving Cerberus about $6Bn.
The owner of Chrysler is Cerberus Capital. Cerberus is also the owner of NewPage Corp. a paper producer that owns a mill in Kimberly. The mill was shut down last year, killing about 600 jobs. The shut down was even more bitter due to the fact that New Page refused to sell the mill even though there appeared to be other interested buyers.

The Cerberus connection was one of the reasons why Rep. Steve Kagen D-Appleton voted against the auto bailout last fall. I wonder how he feels about a taxpayer funded loan to Cerberus funneled through bailed out banking giants?

I did a quick search, but couldn't find a recent update on the state of the mill. If anyone knows, please leave a comment or email me. I assume worsening credit & economic conditions since last year have made sale of the mill impossible now, but I don't know this for sure.

1 comment:

Jo Egelhoff, said...

Just news today that NewPage is putting the Kimberly mill on the market, which is a course of action Kimberly workers have been advocating for months.
Type "NewPage" (without the quotes) into the Search Our Site box at and you'll get a good listing of articles on the subject.