Chrysler to file for bankruptcy, deal with Fiat

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Big suprise. Frankly, I'm suprised it's taken this long to get here. GM will follow soon enough. Still, according to an article I read, they are getting $15-billion from govt. to restructure in bankruptcy. So, what, they get the money, and then the creditors steal it right out from under them, and not allowing them to re-structure?
 
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Is it gonna be chapter 11 or chapter 7? I don't think they can get much out of it if it's chapter 7. The liquidation will probably be a fire sale - everything sold for scrap value basically.
 
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It does not matter, Chrysler is going under, bankruptcy is going too scare customers away, they really do not have any customers now.
 

NJC

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Primer on a Chrysler bankruptcy
 Quote:
Q. Will Chrysler cease to operate? A. No. Chrysler is reorganizing under Chapter 11 of the United States Bankruptcy Code. The law allows companies to shed assets, restructure debt, cancel contracts and close operations that normally would have to continue running. Once they secure financing to leave bankruptcy, these companies are reconstituted as new legal entities. Should Chrysler fail to successfully reorganize, it might turn to a Chapter 7 bankruptcy, which would mean a liquidation.
 
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A little surprising. News 2 days ago was that over 70% of the creditors had agreed to a settlement, so basically 30% of the creditors screwed over the other 70% by refusing to play. Their loss. They'll get far less out of Chapter 11, unless the bankruptcy court actually does liquidate the company- which is fairly unlikely given that more creditors would benefit from keeping it together than the 30% who want it liquidated. Interesting times we live in....
 
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The reason the 30% of the creditors want bankruptcy is because their loans are secured or have credit default swap, so they will get more than the 2/7 settlement the were proposed. Don't be surprised if they got less in the court.
 
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Saw the President's speech. It's probably the only reassuring thing right now about that company. I wonder what happened to Cerberus.
 

Cutehumor

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55% of Chrysler will be owned by the UAW 20% owned by Fiat 8% will be owned by the Government 2% will be owned by the Canadian Auto Workers Union 2% owned by the Canadian government don't know who will own the other 13%? The government is going to replace the entire board of directors. Chrysler CEO says he will step down once the bankruptcy is completed. Fiat is going to commit to building fuel efficient fiat cars (under the chrysler name) in UAW plants here. I think by 2016, if Chrysler repays their bailout funds, Fiat will get another 16% of Chrysler?
 
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 Originally Posted By: Drew99GT
So who's going to buy a Fiat made Chrysler?
The same people who bought Yugos? What's worse than a Fiat made in Italy? A Fiat made in Yugoslavia. Or Detroit. Maybe they can get Malcolm Bricklin as their new president and CEO?
 
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 Originally Posted By: jsharp
 Originally Posted By: Drew99GT
So who's going to buy a Fiat made Chrysler?
The same people who bought Yugos? What's worse than a Fiat made in Italy? A Fiat made in Yugoslavia. Or Detroit. Maybe they can get Malcolm Bricklin as their new president and CEO?
Fiat probably entered into this deal knowing it's going to go down the toilet, and they will eventually receive US bailout money. In this day and age, it wouldn't surprise me!!! I'm sure Jeremy Clarkson is having a jolly ol lash at this deal. "The 500 is a car you can use to get from A to B, as long as B isn’t too far away." Please bring us the Fiat 500 with it's 1.2L of glory.
 
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3,593
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Outside smalltown, IL
 Originally Posted By: Drew99GT
 Originally Posted By: jsharp
 Originally Posted By: Drew99GT
So who's going to buy a Fiat made Chrysler?
The same people who bought Yugos? What's worse than a Fiat made in Italy? A Fiat made in Yugoslavia. Or Detroit. Maybe they can get Malcolm Bricklin as their new president and CEO?
Fiat probably entered into this deal knowing it's going to go down the toilet, and they will eventually receive US bailout money. In this day and age, it wouldn't surprise me!!! I'm sure Jeremy Clarkson is having a jolly ol lash at this deal. "The 500 is a car you can use to get from A to B, as long as B isn’t too far away." Please bring us the Fiat 500 with it's 1.2L of glory.
Hoping for future bailout $ is certainly a consideration. Fiat is used to this sort of thing. How many times has the Italian government saved them over the years? Just business as usual in Italy. Wanting the Jeep name might have been a factor too. That's a salable brand worldwide.
 
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http://www.bloomberg.com/apps/news?pid=20601039&sid=azVYi8YEXsAc&refer=home http://blogcritics.org/politics/article/chrysler-bankruptcy-political-payoff/ This whole deal isn't even a real, legal "bankruptcy". If the stupid schmucks that are at the helm right now start treating the Chinese government and other federal government creditors like they do private creditors, WATCH OUT. This whole deal is downright scary, and I don't think rational people who voted for "change" were voting for what looks to be authoritarianism.
 
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