FISHBREATH
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Hot off the presses. Just heard on Fox News that Reuters reports Chrysler bankrupt. Best thing for them at this point.
Chrysler files Chapter 11 bankruptsy
- Thread starter FISHBREATH
- Start date
-
Actually, it's a slick move. It halts all payments that need to be made and gives them alot of time to hem and haw over stuff with Fiat who also new ahwead of time this would happen. It gives Fiat and Chrysler time to talk, hammer out a few things and keeps the wolfs off there backs. Less pressure from the outside world.
This is a good thing, not a bad thing.
This is a good thing, not a bad thing.
fishy68
Tyr Fryr's Inc.
My feelings exactly. I'm surprised they didn't do it earlier.
pettybludart
Well-Known Member
Ontario,Canada the Government is gonna own 2%!WoW that,s alot!LOL!
SSDA67
Super Stock HEMI
WASHINGTON Chrysler filed for bankruptcy protection Thursday and announced it will temporarily halt most of its vehicle production while it completes a deal with Italian carmaker Fiat designed to revive its tattered fortunes.
The Obama administration said it had long hoped to stave off bankruptcy for the nation's third-largest automaker, but it became clear that a holdout group of creditors wouldn't budge on proposals to reduce Chrysler's $6.9 billion in secured debt. Clearing those debts was a needed step for Chrysler to restructure by a government-imposed Thursday deadline.
"No one should be confused about what a bankruptcy process means," President Barack Obama said in a midday announcement. "This is not a sign of weakness but rather one more step on a clearly chartered path to Chrysler's revival."
Chrysler LLC filed for Chapter 11 bankruptcy protection in New York with the hopes of emerging in as little as 60 days under the new partnership with Fiat. The government, which has already poured $4 billion in loans into Chrysler, would provide up to $8 billion more to carry the company through bankruptcy, said senior administration officials speaking on condition of anonymity. The government will also help appoint a new board of directors.
The deals give Chrysler "a new lease on life," Obama said. "I have every confidence that Chrysler will emerge from this process stronger and more competitive," he said.
Under bankruptcy, Chrysler would still sell cars and the government would back its auto warranties. But Chrysler said Thursday that it will idle its plants during the legal proceedings. The company's chief executive, Robert Nardelli, said in an e-mail to employees that he will leave when the bankruptcy is complete.
When that occurs, the United Auto Workers union would own 55 percent of the Auburn Hills, Mich.-based automaker and the U.S. government would own 8 percent. The Canadian and Ontario governments, which are also contributing financing, would share a 2 percent stake.
Fiat, which the Obama administration hopes can jump start Chrysler with its fuel-efficient and lower-emission technology, would initially get 20 percent of the company but could end up the majority stakeholder. Fiat's share could rise to 35 percent if certain benchmarks are met, and Fiat said Thursday it could get an additional 16 percent by 2016 if Chrysler's U.S. government loans are fully repaid.
Obama said Chrysler Financial, the arm of the company that makes loans to buyers and to dealers to finance their inventories, will be merged into GMAC Financial Services, once General Motors Corp.'s finance arm. The new GMAC will get government support. Chrysler's base of dealers would also be pared down.
The Treasury Department's auto task force has been racing in the past week to clear the major hurdles that prevented Chrysler from coming up with a viable plan to survive the economic crisis ravaging the nation's automakers. Along with the Fiat deal, the UAW ratified a cost-cutting pact Wednesday night.
General Motors, which has borrowed $15.4 billion from the government, has until June 1 to shrink its teetering debt load and reach its own deal with the union to qualify for more assistance. GM CEO Fritz Henderson has said the company still prefers to restructure outside of court, but he acknowledged that bankruptcy has been getting increasingly more likely.
Getting its bondholders to agree to a so-called debt-for-equity exchange is a key component of GM's restructuring plan, but the company's major bondholders have criticized the offer, saying it would leave them with just pennies on the dollar.
Treasury reached a deal earlier this week with four banks that hold the majority of Chrysler's debt in return for $2 billion in cash. But the administration said about 40 hedge funds that hold roughly 30 percent of that debt also needed to sign on for the deal to go through. Those creditors said the proposal was unfair and they were holding out for a better deal.
"I don't stand with them," Obama said.
A person briefed on Wednesday night's events said the Treasury Department and the four banks tried to persuade the hedge funds to take a sweetened deal of $2.25 billion in cash. But in the end, this person said most thought they could recover more if Chrysler went into bankruptcy and some of its assets were sold to satisfy creditors. This person asked not to be identified because details of the negotiations have not been made public.
On Thursday, a group of funds identifying themselves as 20 of Chrysler's "non-TARP lenders" released a statement saying they had been sidelined during negotiations between lenders and the government. The group, which said it holds $1 billion in Chrysler debt, complained that the four banks were "obviously conflicted" because they had accepted money from the government's Troubled Asset Relief Program while they had not gotten TARP money.
The group said its offer to the Treasury Department to reduce its claim to 40 percent was "flatly rejected or ignored."
Fiat is getting its stake in Chrysler for giving the company access to its fuel-efficient technology, a move toward cleaner cars that the Obama administration thinks is critical to Chrysler's future survival. The company has committed to building Fiat cars in Chrysler factories, to be sold as Chryslers.
Obama's auto task force in March rejected Chrysler's restructuring plan and gave it 30 days to make another effort, including a tie-up with Fiat.
Chrysler's bankruptcy filing said it owes more than $10 million apiece to 20 of its unsecured creditors, many of whom are vendors and suppliers.
At the top of that list were: Ohio Module Manufacturing Co. ($70.3 million), advertising agency BBDO Detroit Inc. ($58.1 million), Johnson Controls Inc. ($50.3 million), Continental Automotive ($47 million), Cummins Engine Co. ($43.9 million) and Germany-based Germersheim Spare Parts ($36.2 million).
SS:angel4:
The Obama administration said it had long hoped to stave off bankruptcy for the nation's third-largest automaker, but it became clear that a holdout group of creditors wouldn't budge on proposals to reduce Chrysler's $6.9 billion in secured debt. Clearing those debts was a needed step for Chrysler to restructure by a government-imposed Thursday deadline.
"No one should be confused about what a bankruptcy process means," President Barack Obama said in a midday announcement. "This is not a sign of weakness but rather one more step on a clearly chartered path to Chrysler's revival."
Chrysler LLC filed for Chapter 11 bankruptcy protection in New York with the hopes of emerging in as little as 60 days under the new partnership with Fiat. The government, which has already poured $4 billion in loans into Chrysler, would provide up to $8 billion more to carry the company through bankruptcy, said senior administration officials speaking on condition of anonymity. The government will also help appoint a new board of directors.
The deals give Chrysler "a new lease on life," Obama said. "I have every confidence that Chrysler will emerge from this process stronger and more competitive," he said.
Under bankruptcy, Chrysler would still sell cars and the government would back its auto warranties. But Chrysler said Thursday that it will idle its plants during the legal proceedings. The company's chief executive, Robert Nardelli, said in an e-mail to employees that he will leave when the bankruptcy is complete.
When that occurs, the United Auto Workers union would own 55 percent of the Auburn Hills, Mich.-based automaker and the U.S. government would own 8 percent. The Canadian and Ontario governments, which are also contributing financing, would share a 2 percent stake.
Fiat, which the Obama administration hopes can jump start Chrysler with its fuel-efficient and lower-emission technology, would initially get 20 percent of the company but could end up the majority stakeholder. Fiat's share could rise to 35 percent if certain benchmarks are met, and Fiat said Thursday it could get an additional 16 percent by 2016 if Chrysler's U.S. government loans are fully repaid.
Obama said Chrysler Financial, the arm of the company that makes loans to buyers and to dealers to finance their inventories, will be merged into GMAC Financial Services, once General Motors Corp.'s finance arm. The new GMAC will get government support. Chrysler's base of dealers would also be pared down.
The Treasury Department's auto task force has been racing in the past week to clear the major hurdles that prevented Chrysler from coming up with a viable plan to survive the economic crisis ravaging the nation's automakers. Along with the Fiat deal, the UAW ratified a cost-cutting pact Wednesday night.
General Motors, which has borrowed $15.4 billion from the government, has until June 1 to shrink its teetering debt load and reach its own deal with the union to qualify for more assistance. GM CEO Fritz Henderson has said the company still prefers to restructure outside of court, but he acknowledged that bankruptcy has been getting increasingly more likely.
Getting its bondholders to agree to a so-called debt-for-equity exchange is a key component of GM's restructuring plan, but the company's major bondholders have criticized the offer, saying it would leave them with just pennies on the dollar.
Treasury reached a deal earlier this week with four banks that hold the majority of Chrysler's debt in return for $2 billion in cash. But the administration said about 40 hedge funds that hold roughly 30 percent of that debt also needed to sign on for the deal to go through. Those creditors said the proposal was unfair and they were holding out for a better deal.
"I don't stand with them," Obama said.
A person briefed on Wednesday night's events said the Treasury Department and the four banks tried to persuade the hedge funds to take a sweetened deal of $2.25 billion in cash. But in the end, this person said most thought they could recover more if Chrysler went into bankruptcy and some of its assets were sold to satisfy creditors. This person asked not to be identified because details of the negotiations have not been made public.
On Thursday, a group of funds identifying themselves as 20 of Chrysler's "non-TARP lenders" released a statement saying they had been sidelined during negotiations between lenders and the government. The group, which said it holds $1 billion in Chrysler debt, complained that the four banks were "obviously conflicted" because they had accepted money from the government's Troubled Asset Relief Program while they had not gotten TARP money.
The group said its offer to the Treasury Department to reduce its claim to 40 percent was "flatly rejected or ignored."
Fiat is getting its stake in Chrysler for giving the company access to its fuel-efficient technology, a move toward cleaner cars that the Obama administration thinks is critical to Chrysler's future survival. The company has committed to building Fiat cars in Chrysler factories, to be sold as Chryslers.
Obama's auto task force in March rejected Chrysler's restructuring plan and gave it 30 days to make another effort, including a tie-up with Fiat.
Chrysler's bankruptcy filing said it owes more than $10 million apiece to 20 of its unsecured creditors, many of whom are vendors and suppliers.
At the top of that list were: Ohio Module Manufacturing Co. ($70.3 million), advertising agency BBDO Detroit Inc. ($58.1 million), Johnson Controls Inc. ($50.3 million), Continental Automotive ($47 million), Cummins Engine Co. ($43.9 million) and Germany-based Germersheim Spare Parts ($36.2 million).
SS:angel4:
SSDA67: I like the part where it says," The government will also help appoint a new board of directors." Also, this part, "the United Auto Workers union would own 55 percent of the Auburn Hills, Mich.-based automaker and the U.S. government would own 8 percent." That kinda' sums it up don't you think? Buying a new Chrysler in the future will be like going to the DMV.
Burntorange70
Well-Known Member
WOW! hope it works out for them.
SleeperScamp
Well-Known Member
Yes, I think this is a good thing..... I just wish their stock was public and I would be buying some after all the dust settles.....I see a big rebound in the future....
68383GTS
Well-Known Member
Fiat and Chrysler just makes me sick.
Small Block
Well-Known Member
You're on to em Sleeper. There's money to be made both in Chrysler and GM in the future.
mattsmopars
Well-Known Member
Wondering how far behind GM will be on this?????????????????????????? I do think that it has to happen and i wish it the best. I just hate that the Government poured billions in a sinking ship, but that's what they do best.
Matt
Matt
FISHBREATH
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Chrysler should have gone bankrupt before letting the government get involved. The government will now effectively control 63% of stock (55% UAW and 8% U.S. Treasury). Goodbye performance anything:ncool:
74plyduster
Well-Known Member
GM will soon stand for Government Motors and Chrysler won't be much better off. Fiat + Chrysler = Fisler? Would be interesting to see a Chrysler-built Fiat 500C Hemi, though.
FISHBREATH
Well-Known Member
- Joined
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- Messages
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- Reaction score
- 73
Yeah, we'll be using Barney Frank's gerbils on treadmills for power. (The gerbils would like it much better, anyway):sad5:
LMAO! You're a funny guy.
Frankie
Member #9641
Guitar Jones
aka Angry Johnny
I don't mind that they've declared bankruptcy. What bothers me most is the government forcing them into it when they gave all those big banks so much money with virtually no restrictions. Chrysler was only asking for loans. And then forcing GM's CEO to step down? Freekin unheard of.
No sir, I don't like it at all. And I damn sure don't like Fiats. There is a reason why they don't sell those POS's over here.
I've worked at Chrysler dealerships since I got out of high school, I now work at a Dodge & Hyundai dealership and I'm damn glad to be a Huyndai employee right now. I don't work on a lot of Chryslers anymore but I'm the only tech there trained to work on both. Man I hope I won't have to work on those Fiats.
BTW none of the Canadian or Mexican subsidiaries (read: Chrysler manufaturing plants) have filed for bankruptcy. You will have to draw your own conclusion on that.
No sir, I don't like it at all. And I damn sure don't like Fiats. There is a reason why they don't sell those POS's over here.
I've worked at Chrysler dealerships since I got out of high school, I now work at a Dodge & Hyundai dealership and I'm damn glad to be a Huyndai employee right now. I don't work on a lot of Chryslers anymore but I'm the only tech there trained to work on both. Man I hope I won't have to work on those Fiats.
BTW none of the Canadian or Mexican subsidiaries (read: Chrysler manufaturing plants) have filed for bankruptcy. You will have to draw your own conclusion on that.
OK some more recap on the Chrysler failure after years of currency manipulation from imports and their companies, double cafe smog standards, double safety standards, double fuel standards and higher corporate tax rates than their counter parts have to deal with, and yes then there is the union aspect to that they have to pay out to and into that the competition does not! .
And here is one more take, if the Gov. Congress + President really gave a damm, why did they not cut corporate taxes rates, give deep tax credit for new car sales etc. to help the bottom line during hard times that were all coming to a head?
BUT know, they still were hamming the company's with CAFE standards, High tax rates, workers comp, health insurance, Unions etc., EPA excess regulations only applying to domestic owned companies.
I have been telling people about this for years, everyone blows you off then when it happens they blame someone else. I have mentioned it many times before, I smogged cars in CAL. and the imports made 3-5 times more pollution than USA cars and that was the standard.
Also not that I am in the pocket of the hedge fund folks.
But let’s say you lent me for small numbers sake $100,000. You would not only want the 100k back but interest on top right? I mean you could have taken you 100K and invested it somewhere else, but nope the presi-dunce wants you to get less than .50 cents on the dollar and yet give the unions 55% of the company. Now tell me how the heck that math works? What he is not telling you is that if the hedge funs AKA banks, gave in on the money it comes out of TARP, then they are subject to CEO take over just like GM, Citi, AIG and the likes. It does not get any more socialist than this!
And for any of you that think this does not affect you, I bet you have an IRA, 401k, ROTH etc, many of the companies in the portfolio are the companies that just got screwed.
And to add one more layer to it, you now get the honor of having your tax dollars go to the chapter 11 efforts. And when all is said and done, the company still does not own it's own self.
Yeah I would sign up for that not! And this is the same presi-dunce that forced citi bank when he was a lawyer, was the lead attorney on the case and accused them of red lining and forced them to take on loans of people with extreme high credit risk. Then when they failed because people did not pay the money back, he blames them for giving the loans to the people he sued them to loan too.
Nice, and smucks voted for this??? Simply awesome!
yes we get what we deserve, but I did not vote for this screw job.
And here is one more take, if the Gov. Congress + President really gave a damm, why did they not cut corporate taxes rates, give deep tax credit for new car sales etc. to help the bottom line during hard times that were all coming to a head?
BUT know, they still were hamming the company's with CAFE standards, High tax rates, workers comp, health insurance, Unions etc., EPA excess regulations only applying to domestic owned companies.
I have been telling people about this for years, everyone blows you off then when it happens they blame someone else. I have mentioned it many times before, I smogged cars in CAL. and the imports made 3-5 times more pollution than USA cars and that was the standard.
Also not that I am in the pocket of the hedge fund folks.
But let’s say you lent me for small numbers sake $100,000. You would not only want the 100k back but interest on top right? I mean you could have taken you 100K and invested it somewhere else, but nope the presi-dunce wants you to get less than .50 cents on the dollar and yet give the unions 55% of the company. Now tell me how the heck that math works? What he is not telling you is that if the hedge funs AKA banks, gave in on the money it comes out of TARP, then they are subject to CEO take over just like GM, Citi, AIG and the likes. It does not get any more socialist than this!
And for any of you that think this does not affect you, I bet you have an IRA, 401k, ROTH etc, many of the companies in the portfolio are the companies that just got screwed.
And to add one more layer to it, you now get the honor of having your tax dollars go to the chapter 11 efforts. And when all is said and done, the company still does not own it's own self.
Yeah I would sign up for that not! And this is the same presi-dunce that forced citi bank when he was a lawyer, was the lead attorney on the case and accused them of red lining and forced them to take on loans of people with extreme high credit risk. Then when they failed because people did not pay the money back, he blames them for giving the loans to the people he sued them to loan too.
Nice, and smucks voted for this??? Simply awesome!
yes we get what we deserve, but I did not vote for this screw job.
SSDA67
Super Stock HEMI
We'll find out about GM by May,31.June 1st is their Obama Deadline..
How Does Everyone Feel that Obama Stressed about How he would CREATE Jobs(Unemployment workers more like it)?One of my buddies said he came into the Chrysler Plant in Perrysburg Ohio and Promised them ALL KINDS of things...He wished he NEVER seen him now after voting for him....BAD BAD BAD......
Sad Situations here fells..They are not only putting the Direct employees out of jobs they are putting the Subsidiaries out too..........Millions of jobs..
SS
C/P this morning
NEW YORK Attorneys packed a downtown Manhattan courtroom Friday morning for Chrysler's first hearing that may signal whether a quick, "surgical" bankruptcy will be possible for the automaker.
The nation's third-largest automaker filed for bankruptcy protection Thursday with an ambitious plan to emerge in as little as 30 days as a leaner company.
In the early morning hours before the hearing began, attorneys lined up outside the bankruptcy court for the Southern District of New York under overcast skies with coffee and rain gear in tow of hopes of securing a spot.
The large, windowless courtroom filed up quickly and two overflow rooms with video and audio feeds were opened up to accommodate the crowds.
Bankruptcy Court Judge Arthur Gonzalez convened the hearing shortly after 10 a.m. and approved Chrysler's motion to allow the automaker to pay its employees and contract workers pre-bankruptcy wages, benefits and businesses expenses.
The hearing was briefly halted after a woman standing in the warm and stuffy courtroom apparently fainted.
Eventually, Gonzalez will have to reach a decision on creditors that hold $6.9 billion of Auburn Hills, Mich.-based Chrysler's debt. Banks holding 70 percent of the debt agreed this week to a deal, but some hedge funds balked, saying it was unfair.
SS
How Does Everyone Feel that Obama Stressed about How he would CREATE Jobs(Unemployment workers more like it)?One of my buddies said he came into the Chrysler Plant in Perrysburg Ohio and Promised them ALL KINDS of things...He wished he NEVER seen him now after voting for him....BAD BAD BAD......
Sad Situations here fells..They are not only putting the Direct employees out of jobs they are putting the Subsidiaries out too..........Millions of jobs..
SS
C/P this morning
NEW YORK Attorneys packed a downtown Manhattan courtroom Friday morning for Chrysler's first hearing that may signal whether a quick, "surgical" bankruptcy will be possible for the automaker.
The nation's third-largest automaker filed for bankruptcy protection Thursday with an ambitious plan to emerge in as little as 30 days as a leaner company.
In the early morning hours before the hearing began, attorneys lined up outside the bankruptcy court for the Southern District of New York under overcast skies with coffee and rain gear in tow of hopes of securing a spot.
The large, windowless courtroom filed up quickly and two overflow rooms with video and audio feeds were opened up to accommodate the crowds.
Bankruptcy Court Judge Arthur Gonzalez convened the hearing shortly after 10 a.m. and approved Chrysler's motion to allow the automaker to pay its employees and contract workers pre-bankruptcy wages, benefits and businesses expenses.
The hearing was briefly halted after a woman standing in the warm and stuffy courtroom apparently fainted.
Eventually, Gonzalez will have to reach a decision on creditors that hold $6.9 billion of Auburn Hills, Mich.-based Chrysler's debt. Banks holding 70 percent of the debt agreed this week to a deal, but some hedge funds balked, saying it was unfair.
SS
victordemise
1964 Dart 270 4 Door
My Dart 270 is 45 years old now (1964) and it's still running great.
Do you think any of the crap Chrysler has turned out lately will be on the road 45 years from now? Really? I had an 89 Labaron and it was junk.
Maybe it's time to take the modern materials, and techniques, and re-make the older Mopars only BETTER.
Can you imagine, oh, how about a 2010 Dodge Dart Sport (or Duster)- Lighter, smarter, but identical to say, a 1973-74 Dart Sport (or Duster)? Same basic parts, better mileage thanks to modern construction/materials?
I haven't seen a mass produced car with any real personality in decades.
Whatever. We'll all be dead from pig flu by the end of the month.
(I need a beer)
Maybe I've had enough.
Do you think any of the crap Chrysler has turned out lately will be on the road 45 years from now? Really? I had an 89 Labaron and it was junk.
Maybe it's time to take the modern materials, and techniques, and re-make the older Mopars only BETTER.
Can you imagine, oh, how about a 2010 Dodge Dart Sport (or Duster)- Lighter, smarter, but identical to say, a 1973-74 Dart Sport (or Duster)? Same basic parts, better mileage thanks to modern construction/materials?
I haven't seen a mass produced car with any real personality in decades.
Whatever. We'll all be dead from pig flu by the end of the month.
(I need a beer)
Maybe I've had enough.
Max340
Well-Known Member
You must have been sick before... Chrsyler and De Tomaso.....Chrysler and Maserati.
Max340
Well-Known Member
Thats easy... they are nothing but assets now. They don't declare bankruptcy, they get sold to cover debt if need be.
Max340
Well-Known Member
Whatever you might think of Obama, he has VERY little to do with the situation the automakers find themselves in. In the end, you might consider this: At least Obama has the sense to realize that the U.S. needs a manufacturing base to become a wold leader again. Because of this, he is actively trying to save two of the biggest manufacturers we have. I have some problems with how things have been worked through, and how the money has been doled out. In the end, it means we still have Chrysler as an automaker, and that is the desired end result.
Max340
Well-Known Member
How does everyone think it would end up if Obama/federal government had not stepped in and saved the automakers from certain demise?
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