Does the latest information indicate that bankruptcy is imminent for Chrysler?
Chapter 11 Filing Imminent for Chrysler 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
Chrysler bankruptcy filing imminent Posted by Doug Demmons — Birmingham News April 30, 2009 9:08 AM Chrysler is expected to file for Chapter 11 bankruptcy protection as early as today after talks with creditors broke down last night. Chrysler’s fate was in the hands of about 40 hedge funds that hold about 30 percent of its debt. Although four banks holding 70 percent of the debt had agreed to erase it for $2 billion, the hedge funds were holding out for a better deal. Holding out for a better deal? I guess they think they’ll get more money if Chrysler is forced to sell off some of its assets through the bankruptcy filing. Good luck with that. How much do they suppose an auto assembly plant would go for in a fire sale these days? As to what effect this might have on NASCAR (this is, after all, an auto racing blog) probably nothing, at least not right away. Bankruptcy does not erase contractual agreements that Dodge might have with its teams. Nor does bankruptcy negate the need for Chry
Chrysler is driving ever closer to bankruptcy, the Wall Street Journal, Business Week, and the New York Times report this morning, leading off their business coverage. The carmaker could file for Chapter 11 as early as next week, regardless of whether or not it cinches a deal with Fiat and/or its demanding bondholders, the WSJ says, citing sources. An auto-industry analyst tells Business Week that a Chrysler bankruptcy is a “95% likelihood.” It is the Obama administration that is forcing the bankruptcy plan on Chrysler, the NYT reports, citing sources who say the Treasury has convinced the United Auto Workers that Chapter 11 would preserve union members’ pensions and benefits. Chapter 11 would also open the door wider for Fiat “to complete its alliance with Chrysler while the company is under bankruptcy protection,” the NYT writes. Fiat’s Sergio Marchionne is a busy man these days. Even while the Fiat CEO continues to negotiate an alliance with the much larger Chrysler, Marchionne is a
Chrysler is driving ever closer to bankruptcy, the Wall Street Journal, Business Week, and the New York Times report this morning, leading off their business coverage. The carmaker could file for Chapter 11 as early as next week, regardless of whether or not it cinches a deal with Fiat and/or its demanding bondholders, the WSJ says, citing sources. An auto-industry analyst tells Business Week that a Chrysler bankruptcy is a “95% likelihood.” It is the Obama administration that is forcing the bankruptcy plan on Chrysler, the NYT reports, citing sources who say the Treasury has convinced the United Auto Workers that Chapter 11 would preserve union members’ pensions and benefits. Chapter 11 would also open the door wider for Fiat “to complete its alliance with Chrysler while the company is under bankruptcy protection,” the NYT writes. Sources: http://www.thebigmoney.
