Chrysler files for Chapter 11 bankruptcy

[Friday on my mind]

http://news.yahoo.com/s/ap/20090430/ap_on_bi_ge/us_chrysler

WASHINGTON – Chrysler LLC filed for bankruptcy protection Thursday and announced it will temporarily halt most of its vehicle production while it completes a deal with Italian carmaker Fiat designed to revive its tattered fortunes.

The Obama administration said it had long hoped to stave off bankruptcy for the nation's third-largest automaker, but it became clear that a holdout group of creditors wouldn't budge on proposals to reduce Chrysler's $6.9 billion in secured debt. Clearing those debts was a needed step for Chrysler to restructure by a government-imposed Thursday deadline.

"No one should be confused about what a bankruptcy process means," President Barack Obama said in a midday announcement. "This is not a sign of weakness but rather one more step on a clearly chartered path to Chrysler's revival."

 

[Spleen]

"this is not a sign of weakness but rather one more step on a clearly chartered path to chrysler's revival."

ha!

 

[gunslingingbird]

I thought it wasn't gonna happen until tomorrow. They said on the news that they were still trying to work out some last minute deal with their creditors that would keep them from having to go bankrupt.

 

[lovejoy]

I thought it wasn't gonna happen until tomorrow. They said on the news that they were still trying to work out some last minute deal with their creditors that would keep them from having to go bankrupt.

The three major banks that are the majority creditors (70%) are willing to settle with US Government to take 20 cents on a dollar.

It is the greed of the Wall Street Hedge Funds managers (46) of them that refuse to agree to settle with the US Treasury.

Now the next phase is for the Wall Street Hedge Fund bond holders to go to court to fight for the 2.5 billions.

It is the end of Wall Street GREED !

Let the Wall Street Hedge Funds get nothing in return !

Let the people of America and Canada united against the greed of Wall Street :glugglug:

 

[lovejoy]

Most of Chrysler's assets including factories will be transferred to a new company "while assets and liabilities that are not consistent with our business plan will remain with the old company for disposition."

Let the Wall Street greedy Managers fight for the craps left over at Chrysler ! LOL !

 

[deltaoscarbravo]

There are reports that FIAT may be interested in supporting Chrysler.

The funny thing is that Daimler withdrew their investment in Chrysler last year.
Daimler claimed at the time that the level of losses at Chrysler would not only destroy Chrysler, it would being down Daimler also.

 

[lovejoy]

There are reports that FIAT may be interested in supporting Chrysler.

The funny thing is that Daimler withdrew their investment in Chrysler last year.
Daimler claimed at the time that the level of losses at Chrysler would not only destroy Chrysler, it would being down Daimler also.

FIAT only owns 20% of the "new" Chrysler Company not the baggage comes with it. Chrysler will form a new company with the good part of Chrylser with FIAT.

Also US Treasury requires FIAT to invest close to 6.5 billion dollars to retire the debt owned to US Government and keeps ALL the jobs here in the US.

Besides FIAT has to share the small car technology with Chrysler to improve the fuel efficiency small cars to compete with the japanese cars.

The situation with AG Daimler is totally different. AG Daimler paid $27 billion dollars to "own" Chrysler so AG Daimler also inherits the liability such as retirees pensions and medical benefits.

US Governemnt and Chrysler has "******" UAW to make concession to take over the retirees medical cost liability and in exchange UAW also owns a piece of Chrysler! That's the major difference !

 

[deltaoscarbravo]

FIAT only owns 20% of the "new" Chrysler Company not the baggage comes with it. Chrysler will form a new company with the good part of Chrylser with FIAT.

Also US Treasury requires FIAT to invest close to 6.5 billion dollars to retire the debt owned to US Government and keeps ALL the jobs here in the US.

Besides FIAT has to share the small car technology with Chrysler to improve the fuel efficiency small cars to compete with the japanese cars.

The situation with AG Daimler is totally different. AG Daimler paid $27 billion dollars to "own" Chrysler so AG Daimler also inherits the liability such as retirees pensions and medical benefits.

US Governemnt and Chrysler has "******" UAW to make concession to take over the retirees medical cost liability and in exchange UAW also owns a piece of Chrysler! That's the major difference !

That was part of my point : Daimler could not afford to run the risk of staying with Chrysler.
Daimler was profitable but the losses at Chrysler were so large that it would have brought down both companies.

The information about FIAT is interesting.
FIAT made approached to Chrysler a few months back, too?

 

[mrtrebus]

Good!

 

[lovejoy]

The real truth about this is the power play behind the scene by the Obama Auto task *****:

The new Chrysler is a four-headed mutant partially owned by two governments, the United States (8 percent) and Canada (2 percent). It will be run by an Italian automaker, Fiat Group SpA. Fiat will pour its fuel-efficient technology into U.S. factories owned by fuel-hogging Chrysler to pump out vehicles whose sales will be financed by GMAC.

Behind all of these is an emerging Obama: a sharp aggressive businessman running not just the country but a small part of an icon automobile company, Chrysler !

 

[deltaoscarbravo]

The real truth about this is the power play behind the scene by the Obama Auto task *****:

The new Chrysler is a four-headed mutant partially owned by two governments, the United States (8 percent) and Canada (2 percent). It will be run by an Italian automaker, Fiat Group SpA. Fiat will pour its fuel-efficient technology into U.S. factories owned by fuel-hogging Chrysler to pump out vehicles whose sales will be financed by GMAC.

Behind all of these is an emerging Obama: a sharp aggressive businessman running not just the country but a small part of an icon automobile company, Chrysler !

I admire President Obama.
but if your theory is correct, his choice of car is terrible!
Have you ever driven a FIAT?
Terrible cars, in my opinion

 

[lovejoy]

The UAW also owns a small part of the new Chrysler but not the CAW !

 

[lovejoy]

I admire President Obama.
but if your theory is correct, his choice of car is terrible!
Have you ever driven a FIAT?
Terrible cars, in my opinion

Also the Chrysler CEO will be out, although he claims he is not ****** out or fired by President Obama. Sure, President Obama wants to clean the house in Detroit.

The situation with Fiat is there are no other buyers out there willing to pump 8.5 billion dollars into Chrysler except FIAT. :nanner:

 

[lovejoy]

I admire President Obama.
but if your theory is correct, his choice of car is terrible!
Have you ever driven a FIAT?
Terrible cars, in my opinion

The whole deal is President Obama wants to show who is in charge: The Wall Street or the White House !

Fuck the Wall Street greedy Hedge Fund managers !

Obama rules !

 

[Jagger69]

Chapter 11 in and of itself is not that big of a deal....especially in this economy. It calls off the wolves and buys time. Lots of companies can and do make it back from receivership. I'm not saying Chrysler necessarily will but they certainly might.

I agree about Fiat....not a good match. Chrysler's cars have been bad enough in recent years.

Fix
It
Again,
Tony!

The whole deal is President Obama wants to show who is in charge: The Wall Street or the White House !

Fuck the Wall Street greedy Hedge Fund managers !

Obama rules !

Why are you yelling about this???

 

[lovejoy]

Whyare you yelling about this???

Jagger69,

Obama Auto Task ***** offered additional 250 millions to the Hedge Fund Managers to settle this debt. But the Wall Street Wolves say NO!

Well, let the Wall Street Wolves cry babies, but the judge will decide what's left of " bad" Chrysler for the greedy Wall Street Wolves: bones ! :nanner::nanner:

 

[biomech]

The UAW also owns a small part of the new Chrysler but not the CAW !

Probably because of the larger number of employees overall for the uaw.

 

[lovejoy]

Chapter 11 in and of itself is not that big of a deal....especially in this economy. It calls off the wolves and buys time. Lots of companies can and do make it back from receivership. I'm not saying Chrysler necessarily will but they certainly might.

I agree about Fiat....not a good match. Chrysler's cars have been bad enough in recent years.

Would you buy a Chrysler/Fiat car NOW ?

 

[stanleykup]

Chrystler should have filed for Chapter 11 bankruptcy along time ago. Chapter 11 is there to help companies in trouble. No jobs are going to be saved unless people are buying cars for them to produce. Even if the government gave them truck loads of money, no job is safe there unless there is a production schedule.

 

[titsrock]

I think it's somewhat pathetic that Robert Nardelli, "Mr. $250mil Golden Parachute for Driving Home Depot into the Ground" essentially gets to walk away from the mess he "presided over". How he got hired in the first place is a Sphinx's riddle in and of itself.

I really don't know anything about Fiat. I hope this partnership works for both companies. But the prudent "deal" to be had here for Chrysler was probably with a Japanese or Korean company since they have the "alternative technology" that's closer to market than anything Chrysler has. ****, I think Nardelli's business plan was a nextgen 13mpg Commander revamp? Or, maybe Nardelli made inquiries about buying Hummer from GM "citing synergeries"....