Chapter 11 Filing Imminent for Chrysler

[ARCHIVED THREAD] - Chapter 11 Filing Imminent for Chrysler

Posted: 4/29/2009 11:38:33 PM EDT

Talks between the Treasury Department and lenders aimed at keeping Chrysler LLC out of bankruptcy broke down late Wednesday, making it all but certain that the car maker will file for Chapter 11 protection Thursday, according to people familiar with the discussions.

Administration officials, who have been braced for a Chrysler bankruptcy filing for weeks, say all the pieces are in place to get the country's third-largest employer through the court quickly, perhaps in a matter of weeks.

The talks with Chrysler's lenders broke down after the Obama administration's automotive task force worked into the evening to persuade several hedge funds and other lenders to accept a deal to reduce Chrysler's debt, said people involved in the talks.

The Treasury boosted its most recent offer to lenders on Wednesday by $250 million to $2.25 billion in cash for the banks and hedge funds to forgive $6.9 billion in Chrysler debt, people familiar with the matter said.

J.P. Morgan Chase & Co., which leads the creditor group as Chrysler's largest lender, gave the other 45 banks and hedge funds 90 minutes Wednesday evening to vote on the deal. A large number of the funds voted no and refused to budge, paving the way for an all but unavoidable trip to bankruptcy court, said people close to the talks.

Chrysler's likely trip to bankruptcy court is a watershed moment for an iconic American car maker that popularized the minivan, is the home of the Jeep and managed to rebound from an earlier financial crisis in the late 1970s. But Chrysler's fortunes have faded rapidly since its breakup with Daimler AG two years ago.

A trip through the courts will open a new chapter of uncertainty as the company's lenders and its thousands of affiliated dealers could mount a series of legal challenges to the administration's efforts to pull off a swift reorganization.

If the Obama administration's calculations are correct, the process should pave the way for Italian auto maker Fiat SpA to take over the American company.

Oh The Noes

Posted: 4/29/2009 11:41:03 PM EDT

[#1]

GOOD.

No Administration tampering, done the right way, Chrysler can join Ford on the 'Non Government Controlled' side of the fence....

Posted: 4/29/2009 11:41:42 PM EDT

[#2]

Quoted:
GOOD.

No Administration tampering, done the right way, Chrysler can join Ford on the 'Non Government Controlled' side of the fence....

Lets not forget about all the cash wasted delaying the inevitable.

Posted: 4/29/2009 11:44:00 PM EDT

[#3]

Here's the deal...

Even if Chrysler didn't go bankrupt, the UAW was going to own a big chunk, just like GM.
I've heard UAW would own around 50% of Chrysler and around 30% of GM.

You know how that ends?

UAW has been pushing for years for the Big 3 to use only union suppliers, and trying to force their way into non-union suppliers.
That'll no longer be an issue if UAW gains that much control, it'll be union supplier or nothing.

You think the unions have done damage thus far?

Posted: 4/29/2009 11:45:41 PM EDT

[#4]

Quoted:
GOOD.

No Administration tampering, done the right way, Chrysler can join Ford on the 'Non Government Controlled' side of the fence....

There will be plenty of obunghole tampering and I'm sure we will see plenty more "loans" and cash infusions.

Posted: 4/30/2009 12:32:30 AM EDT

[#5]

Quoted:

Quoted:
GOOD.

No Administration tampering, done the right way, Chrysler can join Ford on the 'Non Government Controlled' side of the fence....

Lets not forget about all the cash wasted delaying the inevitable.

Very true...

And if you remember, I opposed that from the start...

Posted: 4/30/2009 12:34:00 AM EDT

[#6]

Quoted:

Quoted:
GOOD.

No Administration tampering, done the right way, Chrysler can join Ford on the 'Non Government Controlled' side of the fence....

There will be plenty of obunghole tampering and I'm sure we will see plenty more "loans" and cash infusions.

Once it's in bankruptcy court, the executive branch loses a bit of their ability to 'tamper'.....

And unlike GM, where the Administration can intimidate shareholders, Chrysler is a privately held company...

Posted: 4/30/2009 2:34:34 AM EDT

[#7]

Quoted:

Quoted:
GOOD.

No Administration tampering, done the right way, Chrysler can join Ford on the 'Non Government Controlled' side of the fence....

There will be plenty of obunghole tampering and I'm sure we will see plenty more "loans" and cash infusions.

Once it's in bankruptcy court, the executive branch loses a bit of their ability to 'tamper'.....

And unlike GM, where the Administration can intimidate shareholders, Chrysler is a privately held company...

The usual "rules" don't apply anymore, especially not to our beloved messiah.

Posted: 4/30/2009 2:37:56 AM EDT

[#8]

The union can't force people to buy their cars.

Posted: 4/30/2009 3:13:44 AM EDT

[#9]

i'll believe it when i see it.

we're only talking about a difference of a few billion between creditors. if the gov can piss away a hundred times that on the banks, i'm sure they'll find a way to covertly bailout chrysler and make themselves look like saviors for keeping union jobs intact. even if this ultimately costs the taxpayer additional billions, the PR benefits would be huge.

[ARCHIVED THREAD] - Chapter 11 Filing Imminent for Chrysler

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