Chrysler is planning bankrupt?

[leopaul]

Hey guys, I just heard the news found on edmunds.com:

DETROIT — The U.S. Treasury Department is directing Chrysler to prepare to file for Chapter 11 reorganization as early as next week, according to widespread media reports. But Chrysler issued a statement late Thursday that said, "We believe it's important to keep all options open."
"Chrysler will continue to work through the end of the month, based on the direction given by the Presidential Auto Task Force, to secure the support of the necessary stakeholders and reach a successful conclusion that the Administration and U.S. Treasury deem appropriate," said Chrysler in a statement.
Word of the Chapter 11 bankruptcy filing was first revealed in The New York Times, which quoted unnamed sources "with direct knowledge of the talks." Italian automaker Fiat reportedly could complete its alliance with Chrysler while the company is under bankruptcy protection.
Chrysler faces an April 30 deadline to draft a viable business plan supported by its creditors, the UAW and Fiat, the Italian automaker that is seeking a stake in Chrysler.

I don't know what that is, but I think this might hint us the brand's bankruptcy! I mean, what's going on, folks?

[tidus1203]

Waste of money!!! Yun lang ginawa nila, they just wasted money to prolong the agony and prolong the inevitable. I already said that they should have gone bankrupt (pati na din GM) in the first place without government assistance.

[uls]

yep big chance Chrysler will file Chapter 11

the USG will use Chrysler as an example to scare the hell out of GM bondholders and labor union

[tidus1203]

Hahaha some GM bondholders want GM to fail because they have CDS to protect them

http://www.businessweek.com/lifestyl...temp_top+story

[uls]

yep

i mentioned that in the other thread sometime ago

GM bondholders who bought CDS will want GM to go bankrupt

they will get paid face value ng bonds

kesa yung debt for equity swap

[uls]

deadline na ng Chrysler

Chrysler will file Chapter 11

Chrysler will be restructured in bankruptcy

The company will be 20 percent owned by Fiat, 55 percent owned by a union retiree health care trust fund, and 25 percent owned by the USG

let's wait for formal announcement

[uls]

mamya konte

on or before midnight natin

there will be a formal announcement by the USG re Chrysler bankruptcy

[uls]

Game of Chicken

the bondholders are playing a game of chicken with the USG

bankruptcy is the only weapon the USG has

the threat of bankruptcy is the only way the USG can get bondholders to agree to the deal

but bankruptcy is risky

it could destroy Chrysler

and hundreds of thousands of jobs could vanish

the bondholders know the USG wouldnt prefer bankruptcy

the bondholders are betting that the USG won't use the bankruptcy weapon

and in the last minute, the USG would give in to the demands of the bondholders

but the USG has to deal with GM a month from now

the USG has to show GM that it is serious about the bankruptcy threat

by sending Chrysler into bankruptcy

game of chicken

[Jack58]

:-=) . . . . . . . . . Benzyl Alcohol

[AG4]

Looks like this thread was never updated...

Some 2 month old news:
Chrysler-Fiat Deal Signed, Company Exits Chap. 11

In a simple announcement Wednesday morning, Fiat closed its purchase and alliance with Chrysler after the U.S. Supreme Court denied an emergency appeal from some of Chrysler's creditors Tuesday evening.

Robert Kidder was appointed to serve as chairman of the New Chrysler and Sergio Marchionne as CEO. Jim Press, who joined Chrysler after being with Toyota, will become deputy CEO and advisor to Marchionne.

The new company now exits Chapter 11 bankruptcy after only 40 days in bankruptcy with $6 billion in exit financing. In a statement, the "new" Chrysler said it plans to begin operations immediately.

"This is a very significant day, not only for Chrysler and its dedicated employees, but for the global automotive industry as a whole," Marchionne said in a statement.

whole article: http://www.foxbusiness.com/story/mar...o-deal-worked/