Who are the terrorists? Dyncorp - Dan Quayle - Kroll - Leumi - Cerebus

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Offline Dig

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DynCorp oversight in Afghanistan faulted

Dyncorp buys Kroll!

DynCorp is Mixed Up In Vaccines

Cerebus to Buy Dyncorp
13-Apr-2010 18:18 EDT

Private investment firm Cerberus Capital Management, LP has reached a $1.5 billion deal to buy the support and security contractor DynCorp International, including the assumption of debt. The purchase price would be $17.55 per share – a 49% premium to the April 9/10 close of $11.75, and 12.4x the FY 2010 consensus forecast of $1.41 earnings per share. A “go shop” provision gives DynCorp 28 days to find a higher and better offer, if it can.

Affiliates of Veritas Capital Fund Management, L.L.C. have already executed a Voting Agreement in favor, swinging an aggregate of 34.9% of the outstanding shares. That level of support will make the deal very difficult to stop.

Note that 12.4x is still a low multiple, when compared to a number of more diversified public competitors like KBR and SAIC. Unfortunately, it’s difficult to compare DynCorp with privately-held security contractor peers like the similarly-controversial Xe (formerly Blackwater), IAP Worldwide Services, Triple Canopy, etc. The result is somewhat predictable…

In the wake of the Cerebus announcement, a number of law firms are “advertising by press release,” in hopes of representing shareholders who feel that the merger was done on poor terms, or structured in an unfair manner. Firms advertising these efforts include, inter alia, Howard G. Smith, Levis & Korinsky, Rigrodsky & Long P.A., Robbins Umeda LLP, and Wolf Haldenstein Adler Freeman & Herz LLP.

Absent successful legal measures, the DynCorp buyout is expected to close in Q3-Q4 2010. Upon completion, DynCorp International will become a wholly-owned private company, joining Cerebus’ growing portfolio of security-related companies. Cerebus already owns DynCorp competitor IAP Workdwide Services in Cape Canaveral, FL; weapons and military training firm Tier 1 Group in Jacksonville, NC; and the government-focused temporary staffing company Radia Holdings, in Tokyo. In October 2009, Cerberus filed an IPO for Freedom Group Inc. of Madison, NC, which includes the well-known firearms brands Remington, Bushmaster, DPMS/Panther, Marlin, Parker, and others.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Barclays Bank plc and Deutsche Bank Securities Inc. acted as financial advisers to Cerberus, and provided debt financing for the buyout. Evercore Partners was a non-financing advisor, while outside legal counsel included Akin Gump Strauss Hauer & Feld LLP, and Jenner & Block, LLP.

DynCorp’s main financial advisor was Goldman, Sachs & Co. Outside counsel to DynCorp included Schulte Roth & Zabel LLP; plus Richards, Layton & Finger, P.A., who acted as special outside counsel to the Board of Directors.

DynCorp has been a prime beneficiary of the explosive global growth in private security firms, as an adjunct to military operations around the world. The company holds equipment maintenance agreements for vehicles and aircraft, such as the one to service Kuwait’s F/A-18 Hornet fleet. It offers a variety of training programs for foreign police and paramilitary forces, from Afghan and Iraqi police to African Union forces in Somalia. Military support programs include infrastructure contracting under huge multi-award contracts like AFCAP III and LOGCAP IV, and specialty services like foreign linguists, provided through its Global Linguist Solutions LLC (GLS) joint venture with McNeil Technologies.

In recent months, however, the focus on DynCorp has been decidedly negative. The poor performance of Afghanistan’s police forces, and a very critical Inspector General report in January 2010, have placed a bright spotlight on the success of DynCorp’s efforts to train that force, even though the SIGIR report blamed the ineffectiveness of the US State Department as the primary culprit. American commanders have grown increasingly concerned by that performance gap, and awarded a set of contracts to DynCorp’s competitors under multi-award contracts. DynCorp’s response was to protest the awards, on the grounds that the original contract did not cover the counter-insurgency training that American commanders had begun buying, only a broad provision around combating narco-terrorism. In March 2010, the US GAO sustained that protest, and recommended that the Army hold a new competition for the training services it needs. If the Army complies with that recommendation, a contract extension is expected for DynCorp – along with a delay in effectively implementing Afghan theater commanders’ shift in focus.

Bought for $1.5 Billion?

Look at these contracts just in 2010:

U.S. Army has awarded DynCorp to $93 million contract to manage the FLRC
The U.S. Army has awarded DynCorp International a new task order under the Field and Installation Readiness Support (FIRST) contract to manage the Field Logistics Readiness Center (FLRC) at Fort Bliss, Texas. The task order has a potential value of $93 million... ::

U.S awarded $17.2 million contract to DynCorp to support the Royal Saudi helicopter fleet
The U.S. Army Aviation and Missile Command has awarded a contract to DynCorp International to provide helicopter maintenance support services for the Royal Saudi helicopter fleet. The contract, which was awarded under the Foreign Military Sales program, has a... ::

DynCorp wins $35 million contract to Support Philippine Forces from U.S
DynCorp International LLC is being awarded a modification to decrease the maximum dollar value by $34,486,995 contract to provide support services for Philippines operations support in the Republic of the Philippines for the Joint Special Operations Task Force... ::

DynCorp wins $232.4 million mentoring and training contract in Afghanistan
The U.S. Army Research, Development and Engineering Command (RDECOM) has awarded DynCorp International a $232.4 million cost-plus-fixed fee contract to assist the Combined Security Transition Command-Afghanistan (CSTC-A) and NATO Training Mission (NTM) by prov... ::

DynCorp wins $16.9 million maintenance contract for Kuwait Air Force's F/A-18
The United States Navy has awarded DynCorp International a $16.9 million modification to a previously awarded contract for maintenance services in support of the Kuwait Air Force F/A-18 program under the Foreign Military Sales program. This modification exerci... ::

DynCorp International awarded maintenance work for Naval Test Wing Atlantic
The U.S. Air Force has awarded DynCorp International a delivery order under the Contract Field Teams (CFT) contract to provide organizational, intermediate, and depot-level aircraft maintenance and logistics support on all Naval Test Wing Atlantic aircraft and... ::

DynCorp has been awarded $67 million contract by U.S. Army for LCCS C-12 program
The U.S. Army has extended service under the final option year of the Army Life Cycle Contractor Support Services (LCCS) C-12 Program for DynCorp International. The current contract, which was awarded to DynCorp International in 2000, was due to expire at t... ::

DynCorp wins $230 million contract for USAF flight training support
DynCorp International was awarded a contract by the U.S. Air Force to provide aircraft maintenance support at Sheppard Air Force Base. The value of the contract is $31.2 million for the base period, and a potential maximum value of $230 million over seven year... ::

DynCorp, partners win $643.5 million order for Southern Afghanistan logistics support
The Department of the Army has awarded DynCorp International and its two partners, CH2M Hill and Taos Industries, a task order for logistics support for the Afghanistan-South Area of Responsibility (AOR) under its existing LOGCAP IV contract. The task order v... ::

DynCorp International Wins $99 Million Contract to Send Advisors to Iraq
FALLS CHURCH, Va. --- The U.S. Department of Defense has awarded DynCorp International a $99 million contract to support and assist the Multi-National Security Transition Command-Iraq (MNSTC-I). DynCorp International will provide up to 128 Senior Level positio... :: (Source: DynCorp International)

Pentagon Contract Announcement
DynCorp International, Forth Worth, Texas, was awarded on Nov. 12, 2008, an $11,178,448 firm fixed fee contract. DynCorp International LLC shall assist the Kuwait Air Force in achieving its aircraft operational rate of 75 precent through the implementation of ... :: (Source: US Department of Defense)

DynCorp Wins $78M to Support Philippine Operations
DynCorp International LLC, Fort Worth, Texas, is being awarded $44,259,606 which provides for exercise of the first option period under a cost-plus-award-fee contract with award options to provide support services for Philippines operations support in the Repu... :: (Source: US Department of Defense)


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Offline Dig

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Cerberus is named after the 3 headed dog that protects Hades (WTF?)

Dan Quale, Bush's Treasury Secretary Snow, etc. They are the ones who pumped and Dumped Chrysler who is now completely owned by Italian company FIAT.

You cannot make this shit up!

Cerberus Capital Management

Cerberus Capital Management
Type   Limited Partnership
Industry   Private Equity
Founded   1992
Headquarters   New York City
Products   private equity funds
Total assets   $24 billion
Website   www.cerberuscapital.com

Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by 50-year-old financier Steve Feinberg. Former U.S. Vice President Dan Quayle has been a prominent Cerberus spokesperson and runs one of its international units.Contents
1 History
1.1 Chrysler
1.2 GMAC
2 Broken deal for United Rentals
3 Notable acquisitions
4 Notes and references
5 External links


Founded in 1992, Cerberus is named for the mythological three-headed dog that guarded the gates of Hades. Feinberg has stated to his employees that while the Cerberus name seemed like a good idea at the time, he later regretted naming the company after the mythological dog.[1]

The company has been a very active acquirer of businesses over the past several years and now has sizable investments in automotive, sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products. In 2006, its holdings amounted to $24 billion.

On October 19, 2006, John W. Snow, President George W. Bush's second United States Secretary of the Treasury, was named chairman of Cerberus.

J. Ezra Merkin is a partner in Cerberus. Merkin invested his funds into Cerberus and its portfolio companies. His Gabriel fund invested $79 million in Chrysler, $66 million in GMAC and $67 million in Cerberus partnerships, according to year-end statements.[2] The Gabriel Fund was a feeder fund for Bernard L. Madoff Investment Securities LLC.[3]

The Japanese bank, Aozora, a Cerberus company lost $137 million to Bernard L. Madoff Investment Securities LLC. Aozora was part of the investment group that acquired 51 percent of GMAC from General Motors. [4]

On April 12th 2010 Cerberus acquired the private military contractor DynCorp International.


In 2007, Cerberus and about 100 other investors purchased an 80% stake in Chrysler for $7.4 billion,[5] promising to bolster the auto maker’s performance by operating as an independent company. In 2008, the plan collapsed due to an unprecedented slowdown in the U.S. auto industry and a lack of capital.[6] In response to questioning at a hearing before the House committee on December 5, 2008 by Rep. Ginny Brown-Waite, Chrysler President and CEO Robert Nardelli said that Cerberus' fiduciary obligations to its other investors and investments prohibited it from injecting capital.[6]

On March 30, 2009, it was announced that Cerberus Capital Management will lose its equity stake and ownership in Chrysler as a condition of the Treasury Department’s bailout deal, but Cerberus will maintain a controlling stake in Chrysler’s financing arm, Chrysler Financial. Cerberus will utilize the first $2 billion in proceeds from its Chrysler Financial holding to backstop a $4 billion December 2008 Treasury Department loan given to Chrysler. In exchange for obtaining that loan, it promised many concessions including surrendering equity, foregoing profits, and giving up board seats:

"In order to achieve that goal Cerberus has advised the Treasury that it would contribute its equity in Chrysler automotive to labor and creditors as currency to facilitate the accommodations necessary to affect [sic] the restructuring."[7]

Chrysler Financial refused to take $750 million in Troubled Asset Relief Program (TARP) government bailout aid because executives didn't want to abide by executive-pay limits, and because the firm doesn't necessarily need the money.[8]

On April 30, 2009, Chrysler declared bankruptcy protection and announced that GMAC will become the financing source for new wholesale and retail Chrysler cars.[9]

Chrysler Financial, once the exclusive lending arm of the storied automaker, will liquidate and go out of business by Dec. 31, 2011, according to a letter from the U.S. Treasury Department.

Cerberus acquired 51 percent of GMAC, General Motors' finance arm, in 2006 for $7.4 billion.[4] It appointed Merkin as nonexecutive Chairman.[10]

As of October 15, 2008, GMAC had $173 billion of debt against $140 billion of income-producing assets (loans and leases), some which are almost worthless, in addition to GMAC Bank’s $17 billion in deposits (a liability). Even if GMAC liquidated the loans and leases, it could not pay back all of its debt.[11]

On December 10, 2008, GMAC said, "GMAC LLC, the auto and home lender seeking federal aid, hasn’t obtained enough capital to become a bank holding company and may abandon the effort, casting new doubt on the firm’s ability to survive. A $38 billion debt exchange by GMAC and its Residential Capital LLC mortgage unit to reduce the company's outstanding debt and raise capital hasn’t attracted enough participation." This was due in part because Cerberus had raised the credit requirements for car loans so high, virtually eliminating leasing, that they have been responsible for a sizable chunk of lost sales at GM due to customers inability to secure financing, in order to pressure GM into selling or trading their remaining stake in GMAC.[12] GM stands to write-off over a billion dollars in lost residuals – which they paid up front to GMAC. GMAC's exposure to the gap in residual values is around $3.5 billion.[13]

In December 2008, Cerberus subsequently informed GMAC’s bondholders that the financial services company may have to file for bankruptcy if a bond-exchange plan is not approved. The company had previously said it may fail in its quest to become a bank holding company because it lacks adequate capital.[4]

In January 2009, Merkin resigned from his chairmanship as a condition by the U.S. government.[14] Five days earlier, the Federal Reserve granted GMAC bank holding company status, so it could get access to the bailout money.[15] On December 29, 2008, the U.S. Treasury gave GMAC $5 billion from its $700 billion Troubled Asset Relief Program (TARP).

Cerberus's investments in Chrysler and GMAC totaled about 7 percent of its assets under management.[5]

At the end of May, 2009, Cerberus scaled back their ownership as a condition of the lender becoming a bank-holding company, when the bulk of GM's existing ownership stake in GMAC was placed into a trust, overseen by a trustee appointed by the Treasury, to be gradually dispersed. Cerberus distributed the majority of its stake in GMAC to its investors.[16] The Federal Deposit Insurance Corporation (FDIC) gave GMAC access to the Temporary Liquidity Guarantee Program that allows companies to borrow money at lower interest rates. The initiative was created in October, 2008 to help banks borrow money by promising to repay investors if the banks defaulted. The U.S. Government also waived a rule that would restrict the amount of loans that GMAC could make to Chrysler's customers and dealers because both firms are owned in part by Cerberus Capital Management.[17]
Broken deal for United Rentals

In the summer of 2007, Cerberus agreed to buy 100% of United Rentals, the world's largest equipment rental company and traded on the NYSE. After the credit markets began to tighten in August, Cerberus attempted to reduce the deal price. United Rentals refused to reprice the deal, and in November sued in the Delaware Court of Chancery for specific performance (i.e., a court mandate that Cerberus complete the deal). Cerberus took the position that the deal agreements capped its liability for walking away from the deal at $100 million. After a two-day trial, Delaware Chancellor William B. Chandler, III ruled for Cerberus in a closely watched decision, allowing it to pay United Rentals the agreed-upon $100 million "reverse termination fee" and terminate the merger agreement.[18]

Notable acquisitions

Pharmaceuticals - In December 2004, the company announced the acquisition of Bayer's plasma products business and renamed it Talecris Biotherapeutics. It purchased Talecris for $83m, and sold the bulk of its shares in October 2009, for a net gain of $1.8bn.[19] [NET GAIN of $1.8B!!!! Are you kidding me? This company is a threat to National Security!]

Paper products - The company acquired MeadWestvaco's paper business for $2.3B in 2005 and renamed it NewPage Corporation. Cerberus also purchased, from Georgia Pacific Corporation, its Distribution Division/Building Products and all of its associated real estate. It renamed this new company BlueLinx Holdings, based in Atlanta.

Government Services (Military, Energy, and Food & Drug) - owns IAP Worldwide Services, which bought Johnson Controls' World Services division in February 2005. Previously owned Multimax (purchased predecessor company in 2000 and Multimax in 2006; sold entire holding in 2007 to Harris Corporation). The company is also completing acquisition of the private military contractor DynCorp International.[20]
Real Estate - Through investment affiliate Cerberus Real Estate, the company has been making direct equity, mezzanine, first mortgage, distressed and special situation investments in all asset types. It also controls Miami Beach-based LNR Property, a large real estate development and investment firm through subsidiary Riley Property. Cerberus also controls Kyo-ya, a Japan based group of entities that owns several Starwood managed assets in California, Hawaii and Florida.

Retail - Cerberus purchased 655 of the 2,500 Albertson's, Inc., grocery stores, forming Albertsons LLC of Boise, Idaho, in June 2006. They also had an ownership stake in the now-bankrupt Mervyn's department stores, which was acquired from Target Corp. In June 2007, Cerberus acquired Torex Retail Plc., a retail solutions provider in troubled waters, for approximately 400 million US dollars.[21]
Transportation - Acquired bankrupt ANC Rental, then owner of the National and Alamo car rental chains, for $230 million in October 2003 and purchased DaimlerChrysler's 45% share of debis AerFinance, an aircraft leasing business, in May 2005. Complete acquisition of debis AirFinance (later renamed AerCap) was concluded in July 2005. Also acquired North American Bus Industries, Optima Bus Corporation, and Blue Bird Corp. in the bus manufacturing sector. Cerberus also owns bus companies Coach America and American Coach Lines, which were acquired from Stagecoach Group.

Automotive - Peguform, GDX Automotive, and Chrysler.

Staffing Services Radia International

Financial Services - General Motors sold a 51% stake in its GMAC finance unit to an investor group led by Cerberus Capital Management in November 2006. GM expected to receive $14 billion over the next three years from the sale of General Motors Acceptance Corp. In December 2006, Cerberus acquired the Austrian bank BAWAG P.S.K. for a reported EUR3.2 billion. In August 2007, Cerberus announced that it was closing one of their mortgage companies, Aegis Mortgage. It owns half of a 9.9 % share (5%) with the Gabriel Group in Bank Leumi, purchased in 2005,[22] but as of April 19, 2009, it was decided to sell in order to boost capital.[23]

Firearms - Acquired Bushmaster Firearms, Inc., from Windham, Maine native Dick Dyke for an undisclosed sum in April 2006, and purchased Remington Arms in April 2007. Under Cerberus direction, Bushmaster Firearms acquired Cobb Manufacturing, a well-respected manufacturer of large-caliber tactical rifles in August 2007. Cerberus also acquired DPMS Panther Arms December 14, 2007.[24][25] Remington Arms acquired Marlin Firearms in January 2008.[26][27] In October 2009, Remington Military products acquired silencer manufacturer Advanced Armament Corporation.[28] These companies were combined into the Freedom Group.

Entertainment - Acquired a group of seven television stations, Four Points Media Group, from CBS Corporation in 2007.[29][30]
Other holdings of the investment group include the Aozora Bank in Japan and cable operator Galaxy Cable.

In 2007 Cerberus took over Corvest a promotional products company based out of Largo, FL with arms based in Simi Vally, Ca & Thorfare, NJ. With this purchase, Cerbuse placed over 200 people out of work by closing the New Jersey Toppers & another 100 or so people were put out of work with the closing of the Simi Valley Company.
In 2007 Cerberus sold a holding in Formica, Inc.

In 2010 Cerberus was the lead investor that gained an ownership stake in Panavision as part of a debt restructuring agreement with shareholder MacAndrews & Forbes, the holding company of billionaire Ronald Perelman.[31]

In March 2010, Cerberus agreed to buy New England's largest community-based health-care system Caritas Christi Health Care for $830 million. Caritas Christi will be acquired through newly formed Cerberus affiliate Steward Healthcare System LLC. [32]

Notes and references
^ "2007 Awards for Excellence — Best Private Equity House: Cerebus". Euromoney Magazine. July 2007.
^ Wayne, Leslie (January 16, 2009). "Inquiry Started of Financier Who Invested With Madoff". The New York Times. Retrieved April 28, 2010.
^ a b c http://www.privateequityonline.com/Article.aspx?article=33204&hashID=92AA6C1AA4DD29B3A20AEC6CE854A4023AA19648
^ a b Story, Louise (December 5, 2008). "Chrysler’s friends in high places". The New York Times. Retrieved 2009-05-03.
^ a b Gerstein, Dan (December 10, 2008). "Chrysler's hidden coffers". Forbes. Retrieved 2009-05-03.
^ "Statement by Cerberus Capital Management". Wall Street Journal Blogs. December 19, 2008. Retrieved 2009-05-03.
^ http://online.wsj.com/article/SB124027034282936893.html?mod=googlenews_wsj
^ http://www.autonews.com/article/20090430/ANA08/904309980/1142
^ "Inquiry Started of Financier Who Invested With Madoff", New York Times (January 16, 2009)
^ http://www.thetruthaboutcars.com/gmac-may-file-for-bankruptcy-tomorrow/
^ http://www.zimbio.com/Cerberus+Capital+Management/articles/52/Cerberus+Capital+Management+CHRYSLER+LLC+GMAC
^ http://www.thetruthaboutcars.com/gmac-leasing-debacle-bankruptcy-fears-loom-large/
^ http://nymag.com/news/businessfinance/54703/index7.html
^ "Judge Restrains Merkin Funds In Madoff Suit". The New York Times. January 7, 2009. Retrieved April 28, 2010.
^ http://online.wsj.com/article/SB124171875223096951.html
^ Irwin, Neil; Cho, David (May 22, 2009). "As GMAC Gets More Aid, Bailout Becomes One of Nation's Biggest". The Washington Post. Retrieved April 28, 2010.
^ Law Blog - WSJ.com : Chancellor Chandler Hands Cerberus a Big Win
^ Alternet, 8 January 2010, Cerberus Capital: Literally Blood-Sucking the Poor to Make Their Billions
^ MarketWatch. "DynCorp International Inc. to Be Acquired By Cerberus Capital Management, L.P.". 12 April 2010
^ Jonathan Cable and Marc Jones. Reuters. "Cerberus buys troubled Torex for 204 mln stg". 20 June 2007
^ http://www.haaretz.com/hasen/spages/1064448.html
^ http://www.reuters.com/article/GCA-CreditCrisis/idUSTRE53I0FE20090419
^ "DPMS Acquired By Cerberus. Joins Bushmaster and Remington.". AccurateShooter.com Bulletin. December 15, 2007. Retrieved 2008-10-12.
^ "DPMS Acquired By Cerberus Capital Management Affiliate". Shooting Wire. December 14, 2007. Retrieved 2008-10-12.
^ Marlin Firearms (December 26, 2007). "Remington to Acquire Marlin Firearms; Deal positions Marlin and its various brands for growth". Press release. Archived from the original on 2007-12-31.
^ "Form 8-K: Remington Arms Company, Inc.". Security and Exchange Commission. January 28, 2008. Retrieved 2008-10-12. "On January 28, 2008 (the “Marlin Closing Date”), Remington completed its acquisition...."
^ [1] AAC official blog with press release October 5, 2009 entry
^ "CBS sells Austin’s KEYE to private equity firm". Austin American-Statesman. February 7, 2007. Retrieved 2008-10-12. "CBS Corporation (NYSE: CBS, CBS.A) announced today it has entered into a definitive agreement to sell seven of its owned television stations to Cerberus Capital Management, L.P. for $185 million."
^ "Form 8-K: CBS Corporation". Security and Exchange Commission. April 29, 2008. Retrieved 2008-10-12. "On January 10, 2008, the Company completed the sale of seven of its owned television stations in Austin, Salt Lake City, Providence and West Palm Beach to Cerberus Capital Management, L.P. for approximately $185 million."
^ Verrier, Richard. Los Angeles Times. "Creditors set to gain Panavision". 2 March 2010
^ Baumgaertel, Christian. BusinessWeek. "Cerberus to Buy Caritas Christi Health Care for $830 Million". 25 March 2010
Kelley, Matt. "The Congressman and the hedge fund." USA Today. 19 January 2006.
Thornton, Emily. "What's Bigger Than Cisco, Coke, Or McDonald's?" Business Week October 2005.
Stringer, Kortney. "Car Rental Companies are sold." Wall Street Journal. 16 October 2003.
"Acquisition of LNR Property Corporation Completed" Business Wire. 3 February 2005.
"Hirsch, Jerry. "Albertsons To Be Sold, Divided Into 3." Los Angeles Times. 24 January 2006.
Bushmaster Continues to Grow with New Owner
"Acquisition of debis AirFinance Completed," press release from AerCap, 4 July 2005.
"Cerberus Takes Over Majority Interest in Chrysler Group for $7.4B," press release from DaimlerChrysler AG.
http://www.ar15.com/forums/topic.html?b=8&f=34&t=300729 ar15.com March 5, 2007
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Offline Dig

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$10 Billion in bailout funds, WTF?
They only spent $1.5 to get DynCorp!

Snow, Quayle, Feinberg and Merkin: This Is Who Gets Our Bailout Money?

You might not think that your tax dollars should be given to a company like Cerberus Capital Management, L.P., the highly secretive, wildly wealthy, hugely powerful private equity firm.

But, well, we're not in Kansas anymore, are we?

Cerberus has been the beneficiary of not one, but two government bailouts; getting approximately $10 billion in taxpayer funds. Cerberus made two really bad bets, and the American taxpayer is breaking their fall.

Cerberus owns 80% of Chrysler and until recently, a controlling stake of GMAC. Who is Cerberus' chairman? John Snow, Hank Paulson's immediate predecessor as Treasury Secy. Who else is there? Among many influentials, former VP Dan Quayle. Steve Feinberg, the firm's co-founder, is a former junk bond trader at Drexel, and a big GOP contributor.

Cerebus owns companies that have over $100 billion in revenue per year, and their website says they also have $26 billion under management. So their exposure here is really quite a small percentage of their total assets. However, that didn't stop them from pulling all of the levers of power to get government help (Quayle and Snow both personally lobbied government officials). Weird how Quayle and Snow didn't show up on televised public Congressional hearings, though, huh?

As a completely unregulated private equity partnership, Cerberus has no public reporting requirements. In fact, they are now explicitly refusing to disclose their financials, or the financials of Chrysler, even after the bailout. Therefore, we have no idea what management fees they are pulling out of the company, even as we bankroll their continuing operations.

In their defense, turning Chrysler around has apparently been tougher than the geniuses at Cerberus thought it would be. Here's Steve Feinberg last January:

"We believe we bought the company very cheaply, and we do not need to be heroes to earn a good return on the investment."


Cerberus has now had to give up control of GMAC, as part of the bailout deal. However, because of the infusion of government equity, Cerberus and its investors have been assured a relatively soft landing. At the behest of lawmakers, Cerberus has also promised to provide $2 billion in new equity to help GMAC. Why didn't they do this before a government bailout was necessary?

To cap all of this off, the man Cerberus hand-picked to be chairman of GMAC is hedge fund giant Ezra Merkin. Merkin has reportedly lost $1.8 billion in Bernie Madoff's Ponzi scheme, and he is being sued by NYU for "unauthorized" investments of University money with Madoff; New York Law School is suing Merkin over the $3B they lost with Madoff; and Yeshiva University is also blaming Merkin for their massive losses.

Word now is that Merkin will resign his post at GMAC. Gee, why, I wonder?

These are the people we are bailing out??

Just asking:

How much money has Cerberus made in management fees in the past year from Chrysler and GMAC?

Why has John Snow not been asked to testify before Congress?

If, as John Snow has argued, "the involvement of private investment in the economy, as seen in the Chrysler purchase, offers perhaps the last best hope of turning around the auto industry and basic manufacturing in the U.S.," why is he now begging for government funds?

Will Treasury force disclosure of Chrysler and GMAC financials now that they have been bailed out?

Will / should Cerberus be forced to liquidate assets / 'take a haircut' on other investments to keep Chrysler alive, just as the American taxpayer is doing? (after all, Snow has said keeping the car company alive is a patriotic duty!)
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

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Re: Who are the terrorists? Dyncorp - Dan Quayle - Kroll - Leumi - Cerebus
« Reply #3 on: September 21, 2010, 11:44:43 PM »
All the Al-CIA-duh members are connected...

Cadwalader, Rothschild Advising U.S. on Automaker Restructuring
By Tiffany Kary - February 6, 2009 00:01 EST

Feb. 6 (Bloomberg) -- A law firm with bankruptcy expertise, three capital-markets lawyers and an investment bank are advising the U.S. government on how to restructure General Motors Corp. and Chrysler LLC, two people involved in the work said.

The U.S. Treasury Department hired Cadwalader, Wickersham & Taft LLP to evaluate several restructuring scenarios, including a government-funded bankruptcy, the people said. Cadwalader, hired last month, is working with Sonnenschein, Nath & Rosenthal, a Chicago-based law firm with capital-markets experience, and Rothschild Inc., an investment bank, the people said.

A key question the Obama administration wants answered is whether the government’s $17.4 billion in loans to Chrysler and GM would be first in line for repayment, ahead of earlier lenders such as Citigroup Inc. and JPMorgan Chase & Co., the people said.

“They certainly need sound advice on the complicated area of bankruptcy and implications for the economy,” said Bruce Clark, an auto analyst at Moody’s Investors Services.

GM, the largest U.S. automaker, and Chrysler, controlled by private-equity firm Cerberus Capital Management LP, have a Feb. 17 deadline for a progress report on a viable restructuring plan.

Unless the companies show by March 31 that they will be able to return to profit and repay the money, the government can demand repayment of the loans.

Ford Motor Co., the second-largest U.S. car maker, has shunned the government handouts so far, and isn’t a target of the work by the firms, the people said.

Early Stage

Cadwalader’s work is at an early stage and has not gotten beyond a broad overview, the people said.

Treasury spokesman Isaac Baker didn’t have an immediate comment. Rothschild managing director Todd Snyder didn’t immediately return a call and e-mail for comment. A Cadwalader spokesperson declined to confirm or deny the assignment.

Sonnenschein spokesman Jeffrey Mutterperl said his firm is advising Treasury on “ongoing matters related to the 2008-2009 developments within the U.S. automobile industry.”

GM spokeswoman Julia Gibson had no comment. Chrysler spokeswoman Shawn Morgan didn’t return calls for comment. Both automakers have dismissed calls to reorganize under bankruptcy protection, saying a Chapter 11 restructuring would scare away buyers and lead to liquidation.

Cadwalader will advise the government on how automakers might be able to do some restructuring out of court, such as gaining concessions from unions and suppliers, the people said. That would make a court-supervised bankruptcy easier, they said.

No Creditor Pact

When the government loaned the $17.4 billion in December, it didn’t work out an inter-creditor agreement that would determine its rights relative to past lenders. Cadwalader is working on such an agreement, as well as on related labor and environmental matters, the people said.

Cadwalader is also advising the government on how it might become a so-called “debtor-in-possession” or DIP lender, the people said. DIP loans fund a company’s operations as it reorganizes in bankruptcy. DIP lenders get repaid before pre- bankruptcy lenders and creditors.

Rothschild was retained to evaluate specific financial matters, such as what size such a loan would need to be, based on automaker business projections, among other things. Sonnenschein is evaluating other financial matters, such as how to structure a DIP loan, the people said.

Cadwalader has prior expertise in DIP loans, having arranged the biggest such lending ever Jan. 7 for Lyondell Chemical Co. The company received $8 billion in financing from 14 lenders. That loan, which involved a “roll-up” allowing pre-bankruptcy lenders to convert old debt to new debt, helped to raise new money amid the credit crunch.

Cadwalader’s Lawyers

The bankruptcy lawyers leading the work at Cadwalader are Deryck Palmer and John Rapisardi, the people said.

Sonnenschein lawyers working on the bailout include capital- markets partners Robert McCarthy, Jeffrey Murphy and Erik Klingenberg, Mutterperl said. All are former partners at Thacher, Proffitt & Wood LLP who were hired by the government in December to assist in investing in entities by purchasing asset-backed securities under the Emergency Economic Stabilization Act.

Rothschild’s expertise includes representing Solutia Inc., a chemical maker that emerged from bankruptcy in 2008 after a dispute with Citigroup, Goldman Sachs Group Inc. and Deutsche Bank AG over whether the banks could pull out of a $2 billion funding of its restructuring because of poor market conditions. Rothschild also advised Delphi Corp., the bankrupt auto-supplier that was once a subsidiary of General Motors.

Todd Snyder, managing director of Rothschild, is leading the Rothschild effort for Treasury, the people said.

The Treasury Department has already provided a $6 billion bailout to GMAC LLC, which is partly owned by GM, and $1.5 billion to Chrysler Financial.

Current Efforts

GM and Chrysler are already both trying to restructure out of court, cutting labor costs, reducing debt levels and eliminating dealers. GM is in talks to pare $27.5 billion in unsecured debt to about $9.2 billion in a swap for equity, and it plans to shut dealers and reduce obligations to a union retiree health fund by 50 percent to $10.2 billion in a separate equity swap. Chrysler CEO Robert Nardelli has also said the company will try to cut debt levels.

January sales results from automakers plunged 55 percent at Chrysler, 49 percent at GM and 40 percent at Ford.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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Re: Who are the terrorists? Dyncorp - Dan Quayle - Kroll - Leumi - Cerebus
« Reply #4 on: September 21, 2010, 11:46:37 PM »

Friday, July 3, 2009
Benjamin Netanyahu: CFR Member

Not new but increasingly relevant information, a blast from the past:

Who Owns the National Bank of Israel? [who gets the NIS seigniorage?] - Barry Chamish, February 21, 2006

[Note: Up to now, each Israelite was stolen of about 800,000 US dollars-equivalent of seigniorage]

Where CFR sell each other's profits. [Barry Chamish continues with information from a reliable source]

I told you a couple of days ago that a CFR member, (Edgar Bronfman's son Matthew who purchased it for the family), purchased 6% of Israel Discount Bank, with option to buy another 25% the controlling interest, listen to this:

November 14, 2005, there was a press release from the Israel Finance Ministry, with EHUD OLMERT as finance minister, to the effect that 9.99% of Bank Leumi's shares had been sold to the "Barnea Investment Group" ( a Jewish enough sounding name, don't you think?), in parenthesis the Cerberus-Gabriel group, with option to buy another 10%, which would make it the controlling interest in the bank, in this particular case.

Prof. Amir Barnea is the founding Dean of the Arison School of business, teaches at the Recanati School of Business, TAUGHT AT TAU, SPECIALIZES IN CORPORATE FINANCE AND IS A VISITING PROFESSOR IN THE US, IN PARTICULAR IN HOUSTON, AT RICE UNIVERSITY, and is a partner in the Singer Barnea investment firm.

What the press release failed to mentioned, and what the Knesset official release in January of 2006 - complete with picture of beaming Ariel Sharon, Ehud Olmert, Stanley Fischer, and Jewish representative of the Barnea group - "failed to mention", and what the Israeli Press the world over failed to mention, is that the Barnea group is a front for the Cerberus hedge fund, (the Cerberus-Gabriel group, according to my research, only appears on the internet in connection with this single transaction of Ben-Leumi; with other words, it doesn't exist!). Who REALLY bought 9.99% of Bank Leumi, and who, by their own words, definitely plans to exercise their option to buy the rest, thereby making them the controlling interest of the "National Bank of Israel"? Well, the CERBERUS HEDGE FUND, WITH AT ITS HEAD NONE OTHER THAN DAN QUAYLE, BILDERBERG GROUP MEMBER, FORMER US VICE PRESIDENT, WHO FAILED TO OBTAIN THE LAST REPUBLICAN NOMINATION, WHO STILL HAS PRESIDENTIAL ASPIRATIONS, WHO REGULARLY VISITS THE WHITE HOUSE AND HELPS THEM WHENEVER HE CAN, WHOSE WIFE BELONGS TO A HOUSTON-BASED CHURCH.

More details: The Cerberus group was competing against six other bidders, and BID AS A STRATEGIC INVESTOR vs. FINANCIAL INVESTORS . With other words, Dan Quayle's purpose is not to make a lot of money, but to be able to do whatever he wants and actively control the bank. Not only that, but he paid so much more for the deal than what it is worth that the whole financial and banking community was in shock!!



And [the reliable source] found the source for the donations. They were both American members of the CFR;

Council on Foreign Relations Membership List (L-R)
2893. OLIVER COVEY T,CFR '84, 1988 annual rpt ,,
2894. OLMERT EHUD,CFR '92,,,

2803. NEMAN RICHARD A,, 1988 annual rpt
2804. NETANYAHU BENJAMIN,, 1988 annual rpt

December 13, 2005
Cerberus-Gabriel hedge fund buys stake in Leumi Bank

Israel is on its way to privatization. The banking sector is amongst the first ones to take a step in this direction. Bank Leumi was in the market recently and attracted bids from several players. Bidder names include strategic investors like Lev Leviev, IDB and Bill Davidson and also financial contenders like UBS, Deutsche Bank and Citibank. However the winner was an American Hedge fund, Cerberus-Gabriel.

Cerberus-Gabriel has purchased 9.9% of the shares of the bank. The purchase of this stake was for approximately $500 million. The fund also has the option of buying an additional 10.01% in the bank. This will bring the total shares quantum to 20% and is roughly valued at $1 billion. This option of additional purchase has to be utilized with in the next one and a half years.

Ehud Olmert, Finance Minister of Israel, is reportedly quite satisfied with the outcome. He feels that this is a positive development and will help the over all Israeli economy. He is amongst the top promoters of privatization move. In his statement he also mentioned that the purchase will ensure healthy competition between the banks and will definitely contribute a lot to the local market.

Another person quite happy with the development is Yaron Zelekha, the treasury's accountant-general, who led the tender. He sees it as fulfillment of the promise made to the people of Israel about privatization of the entire banking system in 2005. Ynetnews reports:

“Cerberus-Gabriel offered NIS 2.474 billion (about USD 500 million) for 9.99 percent of the bank's shares, and has the option to purchase another 10.01 percent of the shares held by the State within a year and a half, and to reach a total holding of 20 percent of the bank's shares.”
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately