Chrysler will pay $2 billion to its secured creditors. Its unsecured creditors, who are mainly parts suppliers and the BBDO Detroit advertising agency, may be paid more immediately in some cases but have no guarantee of any payments. Salaried employees might or might not be ordered to take two weeks off without pay.
The top unsecured debtor is Ohio Module Manufacturing, a Hyundai division which supplies Jeep components, and is owed $70 million. Ad agency BBDO Detroit was at #2, with $58 million owed. Many of the top ten debtors are recognizeable to Chrysler fans - Johnson Controls (interior parts), Continental Automotive (electronics, ABS, brakes, and more), Cummins[/b], Visteon, New Process, and Denso. Also included are Comau of Michigan and Germersheim Spare Parts of Germany.
If the Bankruptcy judge throws out the contract between Cummins and Chrysler, would that open the door for a possible contract between Ford and Cummins?