Wild Ass Rumor of the Day II: Cerberus to Sue Daimler
Cerberus may be positioning itself to sue Daimler for unfair business practices. They could do so– after filing for Chapter 11 bankruptcy protection– under a claim of "fraudulent conveyance." Rather than turn this into a boring law seminar– and God knows I'm an expert on that front– let's just say that the provision in question (or not) is part of the U.S. bankruptcy code designed to stop management from hiding capital from creditors. Here's the twist: Cerberus could use fraudulent conveyance to claim that the Germans cooked the books, sneakily selling them a business they knew wasn't "a going concern." While Cerberus wouldn't get a full refund, every little bit helps AND it would be a genuine PR coup, protecting Cerberus' rep (tricky German bastards). There are a couple of caveats. First, that small matter of filing for bankruptcy. Second, Daimler could be protected by a statute of limitations, whose term depends on which country's laws govern the terms of the original sale. I'm still checking, but it appears that it's a U.S. deal, giving Cerberus a year from the transaction's conclusion to file and bite Daimler's ass. Hang on; this could get seriously weird.