Anthony Posted April 30, 2009 Share Posted April 30, 2009 Source: CNN Story Chrysler will file for bankruptcy now that negotiations with creditors have collapsed. NEW YORK (CNNMoney.com) -- Chrysler LLC is going to file for bankruptcy, an administration official confirmed to CNN Thursday. The filing comes after some of the company's smaller lenders refused a Treasury Department demand to reduce the amount of money the troubled automaker owed them. Chrysler officials had no comment on the bankruptcy report. The company faces a Thursday deadline from the Treasury Department to reach deals with creditors who had loaned the company about $7 billion. But the filing will not mean the halt of operations or liquidation for the troubled 85-year old automaker. Instead, the administration expects to use the bankruptcy process to join Chrysler with Italian automaker Fiat. Full Story HERE Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 30, 2009 Share Posted April 30, 2009 But the filing will not mean the halt of operations or liquidation for the troubled 85-year old automaker Wonder how long that will be true. It doesn't look good. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 30, 2009 Share Posted April 30, 2009 It doesn't look good. In the long run it can be nothing but good though. Either Chrysler emerges as a leaner and stronger company with its issues in the past, or it dissolves and cedes to the other automakers who are in better shape already. It's not necessarily good for Chrysler or its employees, but it's an eventual good development for the industry as a whole. They sure couldn't keep going the way they were. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 30, 2009 Share Posted April 30, 2009 In the long run it can be nothing but good though. Either Chrysler emerges as a leaner and stronger company with its issues in the past, or it dissolves and cedes to the other automakers who are in better shape already. It's not necessarily good for Chrysler or its employees, but it's an eventual good development for the industry as a whole. They sure couldn't keep going the way they were. I agree, in the long run, it could be great for everybody. The workers, the suppliers, the local economies that depend on the jobs and taxes. I say it doesn't look good because Obama is trying to paint this rosy picture on how bankruptcy will only last a month or so. But Delphi has been trying to exit it for how long now? 4 years? Quote Link to comment Share on other sites More sharing options...
LSFan00 Posted April 30, 2009 Share Posted April 30, 2009 It's thought by some that they might yet be merged with GM, ultimately. Who knows what that might really mean? It's all idle speculation for now... Quote Link to comment Share on other sites More sharing options...
Anthony Posted April 30, 2009 Author Share Posted April 30, 2009 President to make speech at noon ET. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted April 30, 2009 Share Posted April 30, 2009 I see this as a car market correction that has been coming for a while. I never really understood bankruptcy and reorganization until recently when people started discussing it. Watching firms restructure debt or accept company shares in exchange seems too good to be true but it seems to be an acceptable strategy for moving past a threat of lost wealth on both sides. The funny thing is Chapter 11 or not, if Chrysler and GM reorganize or reduce debt with the help of the government and come back to the market stronger than ever, what does that say to Ford? I hope the American buyers jump on Ford for hanging tough and sorting out their own affairs without needing public money. They could show their appreciation by taking Ford above 20%market share. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted April 30, 2009 Share Posted April 30, 2009 The funny thing is Chapter 11 or not, if Chrysler and GM reorganize or reduce debt with the help of the government and come back to the market stronger than ever, what does that say to Ford? I think Ford is trying to answer that same question Quote Link to comment Share on other sites More sharing options...
stephenhawkings Posted April 30, 2009 Share Posted April 30, 2009 ooh boy i cant wait they'll file bankruptcy cut the union employees pay in half and GM and Ford will follow suit , at least on the payscale parity Quote Link to comment Share on other sites More sharing options...
matthewq4b Posted April 30, 2009 Share Posted April 30, 2009 ooh boy i cant wait they'll file bankruptcy cut the union employees pay in half and GM and Ford will follow suit , at least on the payscale parity If Chrysler Files for Bankruptcy the UAW will end up being one of the majority stake holders in the reorganized company. So do not expect to see wages cut in half. Matthew Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 30, 2009 Share Posted April 30, 2009 ooh boy i cant wait they'll file bankruptcy cut the union employees pay in half and GM and Ford will follow suit , at least on the payscale parity Hate to break the news to you, but the judge will probably use the agreement that the members just voted on. Quote Link to comment Share on other sites More sharing options...
RaZor Posted April 30, 2009 Share Posted April 30, 2009 Apparently the Ch11 reorganization bankruptcy became necessary because a few minority stake holders, hedge funds that were bond holders, refused to accept the lower (in their opinion) settlement that the major bond holders/creditors JP Morgan Chase, Citigroup, Goldman Sachs and Morgan Stanley accepted. The hedge funds would rather see a higher payout that they may get from Ch11 and/or Ch7 liquidation – even though a couple of them typically invest in “distressed companies”. Those hedge funds are Oppenheimer Funds, Perella Weinberg, & Stairway Capital. The interesting part of it appears to be that Cerberus will loose 100% of its stake/ownership of the company, Daimler gives up its stake and will contribute to the pension fund and the UAW trust will get 55%, Fiat 35%, US gov’t 8% and Canadian gov’t 2%. Those, of course, are approximates, subject to change. One thing that it will do (Ch11) is make it every easy to eliminate dealerships immediately without any cost to Chrysler as a judge can just eliminate them by directive. It also appears that provisions of the plan will mandate a specific minimum as far as domestic manufacturing and sales volume. Interesting. A key issue that is still unknown is who will appoint the board of directors (possibly 9 members) – and it does appear that Fiat will take over management of the company. In any case, Ch11 appears to be a new lease on life for Chrysler Quote Link to comment Share on other sites More sharing options...
DUCKRACER Posted April 30, 2009 Share Posted April 30, 2009 Source: CNN Story Chrysler will file for bankruptcy now that negotiations with creditors have collapsed. NEW YORK (CNNMoney.com) -- Chrysler LLC is going to file for bankruptcy, an administration official confirmed to CNN Thursday. The filing comes after some of the company's smaller lenders refused a Treasury Department demand to reduce the amount of money the troubled automaker owed them. Chrysler officials had no comment on the bankruptcy report. The company faces a Thursday deadline from the Treasury Department to reach deals with creditors who had loaned the company about $7 billion. But the filing will not mean the halt of operations or liquidation for the troubled 85-year old automaker. Instead, the administration expects to use the bankruptcy process to join Chrysler with Italian automaker Fiat. Full Story HERE Fiat owns Alfa Romeo, which are very nice looking cars. I wonder if they will sell them in the U.S.? I wonder if they will be DEPENDABLE. Quote Link to comment Share on other sites More sharing options...
Critic Posted April 30, 2009 Share Posted April 30, 2009 The interesting part of it appears to be that Cerberus will loose 100% of its stake/ownership of the company, :happy feet: :happy feet: :happy feet: :happy feet: Music to my ears and it's like sugar to help the medicine go down. Quote Link to comment Share on other sites More sharing options...
matthewq4b Posted April 30, 2009 Share Posted April 30, 2009 And it is offical Chrysler files for bankruptcy Matthew Quote Link to comment Share on other sites More sharing options...
taxman100 Posted April 30, 2009 Share Posted April 30, 2009 Goes to show, it is bad to do business with deadbeats, be it Chrysler, homeowners, etc. Look for Uncle Sam to pump more money into a losing effort, and you children and Grandchildren get to pay the Chicoms and Arabs back for this entire folly. I've owned a number of Chryslers in the past - they peaked around the late 90's, and have gone downhill ever since. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 30, 2009 Share Posted April 30, 2009 I've owned a number of Chryslers in the past - they peaked around the late 90's, and have gone downhill ever since. Most would say the downhill started long before that. Quote Link to comment Share on other sites More sharing options...
kpc655 Posted April 30, 2009 Share Posted April 30, 2009 In the long run it can be nothing but good though. Either Chrysler emerges as a leaner and stronger company with its issues in the past, or it dissolves and cedes to the other automakers who are in better shape already. It's not necessarily good for Chrysler or its employees, but it's an eventual good development for the industry as a whole. They sure couldn't keep going the way they were. The worrisome outcome is the one in the middle where Chrysler becomes a perpetual money loser and ward of the state. Quote Link to comment Share on other sites More sharing options...
lfeg Posted April 30, 2009 Share Posted April 30, 2009 The interesting thing is that manufacturing facilities will be shut down from May 4 until reorganization is finished, which is expected to be 30 to 60 days. Any bets on when it will actually resume? Quote Link to comment Share on other sites More sharing options...
forddaughter Posted April 30, 2009 Share Posted April 30, 2009 They hope to emerge in 60 days. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 30, 2009 Share Posted April 30, 2009 They hope to emerge in 60 days. ..and I hope to retire by age 40. Quote Link to comment Share on other sites More sharing options...
Critic Posted April 30, 2009 Share Posted April 30, 2009 Look for Uncle Sam to pump more money into a losing effort, and you children and Grandchildren get to pay the Chicoms and Arabs back for this entire folly. What is a Chicom? Quote Link to comment Share on other sites More sharing options...
Moby Vic Posted April 30, 2009 Share Posted April 30, 2009 Chicom = Chinese communist Quote Link to comment Share on other sites More sharing options...
TStag Posted April 30, 2009 Share Posted April 30, 2009 I think this deal has quite a lot going for it. Chrysler, Jeep and Dodge get access to Fiat's international dealership networks and Fiat, Alfa and even Lancia could all go through the Chrysler network. There's not much overlap in cars, so not a lot of products stealing sales off each other. Hopefully Fiat will fix Chryslers interiors and bring them up to European standards. Great move I think. Also bear in mind Fiat is possibly trying to do another deal with Opel, which will give the group even more efficiencies. Throw in their alliance with TATA and this could be the birth of a truly huge auto giant with a lot of potential...... Having said that it could also go the way of the Titanic..... Quote Link to comment Share on other sites More sharing options...
Cocheese Posted April 30, 2009 Share Posted April 30, 2009 ooh boy i cant wait they'll file bankruptcy cut the union employees pay in half and GM and Ford will follow suit , at least on the payscale parity You know, reading what you have to say on the Climate thread lead me to believe you might be an idiot. Reading this, just proves that you are. Yes, the 6% of the total operating cost that goes to paying the employees is the problem. Please, take you head out of your ass. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.