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U.S. Is Said to Prepare Filing for Chrysler Bankruptcy
The New York Times ^ | April 23, 2009 | By MICHELINE MAYNARD and MICHAEL J. de la MERCED

Posted on 04/23/2009 12:48:06 PM PDT by MaestroLC

DETROIT — The Treasury Department is preparing a Chapter 11 bankruptcy filing for Chrysler that could come as soon as next week, people with direct knowledge of the action said Thursday.

The Treasury has an agreement in principle with the United Automobile Workers union, whose members’ pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing, said these people, who asked for anonymity because they were not authorized to discuss the case.

Moreover, Fiat of Italy would complete its alliance with Chrysler while the company is under bankruptcy protection.

The only major question that remains unresolved is what happens to Chrysler’s lenders, who hold $6.9 billion in company debt. The government’s most recent offer, presented Wednesday, would give the company’s lenders about 22 cents on the dollar, or $1.5 billion, and a 5 percent equity stake in a reorganized Chrysler. Earlier this week, a steering committee of the lenders proposed that they receive 65 cents on the dollar, or $4.5 billion, and a 40 percent equity stake.

Officials at Chrysler and the Treasury were not immediately available for comment.

A bankruptcy filing by Chrysler would be the first among Detroit’s troubled automakers, who have been mired in a devastating sales slump since last fall. Treasury is also working with General Motors to prepare a possible bankruptcy case, and the terms of a Chrysler filing might offer a glimpse into the shape of G.M.’s own filing.

Some analysts questioned whether the Treasury’s steps to prepare a bankruptcy case were an effort to put more pressure on lenders, with which it has exchanged proposals meant to reduce Chrysler’s debt. Chrysler faces an April 30 deadline from the Treasury, while G.M. faces a June 1 deadline in its own efforts to draft a new restructuring plan.

(Excerpt) Read more at nytimes.com ...


TOPICS: Breaking News; Business/Economy; Government; News/Current Events
KEYWORDS: automakers; bankruptcy; bhoeconomy; chrysler; detroit; economy; filing; uaw
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To: MaestroLC
The Treasury Department is preparing a Chapter 11 bankruptcy filing for Chrysler ...

Words fail me... Treasury - the GOSHDARN MOTHER-PUSS-BUCKET SUMNABATCH GOVERNMENT - is custom designing bankruptcy for a freaking company?!?

21 posted on 04/23/2009 12:58:18 PM PDT by MortMan (Power without responsibility-the prerogative of the harlot throughout the ages. - Rudyard Kipling)
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To: nyconse
I don’t know how many more job losses we can absorb and still climb out of this mess.

I expected 10% unemployment by the end of the year...it's looking more like 15% by the day...

Not good for sure...
22 posted on 04/23/2009 1:00:30 PM PDT by TSgt (Extreme vitriol and rancorous replies served daily. - Mike W USAF)
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To: Anti-Bubba182

Fiat will buy/take over Chrysler.


23 posted on 04/23/2009 1:01:26 PM PDT by nyconse (When you buy something, make an investment in your country. Buy Amrican or bye bye America)
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To: MittFan08
Have you read the plan?

Maybe you have a link to it since you read it!!

24 posted on 04/23/2009 1:02:30 PM PDT by org.whodat (Auto unions bad: Machinists union good=Hypocrisy)
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To: MaestroLC
FUBO
25 posted on 04/23/2009 1:02:37 PM PDT by Vaquero ("an armed society is a polite society" Robert A. Heinlein)
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To: MikeWUSAF

I’m thinking this also. We bail out all sorts of companies-banks, autos, suppliers...but still people are getting laid off.


26 posted on 04/23/2009 1:02:59 PM PDT by nyconse (When you buy something, make an investment in your country. Buy Amrican or bye bye America)
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To: jalisco555

This smells very stinky...it should be called the UAW Pay for Play, the Chitown Way. And where does the US Treasury find that $5 BILLION to dump into the UAW Pension Funds, oh right from the US Taxpayers who have refused to buy the crappy Chrysler products produced by the UAW thieves.


27 posted on 04/23/2009 1:03:42 PM PDT by iopscusa (El Vaquero. (SC Lowcountry Cowboy))
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To: MaestroLC

The UAW parasites have finally killed their host and are now latching on to the US taxpayer.

LQ


28 posted on 04/23/2009 1:04:35 PM PDT by LizardQueen (The world is not out to get you, except in the sense that the world is out to get everyone.)
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To: kenth
How about Chrysler itself, did 0 discuss this with them at all? Or better yet, have they discussed it with the American people...

Your questions make no sense. Obama is Chrysler, the new, improved, neosocialist Chrysler, so he doesn't have to discuss it with anyone else. Didn't you learn about the efficiency of national socialism when you studied history?

As for discussing this with the American people, he doesn't need to. He won. Obama and Pelosi tell us what we will do, and our place is to obey, not to question our betters. I think maybe you need a bit of re-education.

How'd I do? Am I ready for a leadership post in Obama's civilian forces?

29 posted on 04/23/2009 1:05:07 PM PDT by TurtleUp (Turtle up: cancel optional spending until 2012, and boycott TARP/stimulus companies forever!)
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To: MaestroLC
Chapter 11 is a good sign.

Perhaps they can slice off thick slabs of UAW fat from the business plan.

30 posted on 04/23/2009 1:06:15 PM PDT by TChris (There is no freedom without the possibility of failure.)
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To: nyconse

And now there will be the bailed out and those that paid for the bail-outs and then lost their jobs.

Not good for American civility if you ask me…


31 posted on 04/23/2009 1:06:21 PM PDT by TSgt (Extreme vitriol and rancorous replies served daily. - Mike W USAF)
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To: jalisco555
Bingo.

This pre-packaged bankruptcy is just this side of fascism. When the government reaches their hand into the wallets of taxpayers to subsidies a company (only because that company employs a massive DNC lobby), it's fascism.

32 posted on 04/23/2009 1:06:54 PM PDT by Big_Monkey
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To: LizardQueen

And the taxpayer payeth and then payeth some more and so goes their children and grandchildren if we still have a country by then...


33 posted on 04/23/2009 1:07:54 PM PDT by TSgt (Extreme vitriol and rancorous replies served daily. - Mike W USAF)
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To: jalisco555

Bush? Carter should have let it go down the drain in 1977.


34 posted on 04/23/2009 1:09:03 PM PDT by MeanWestTexan (Beware Obama's Reichstag Fire.)
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To: MikeWUSAF

I have a dime.


35 posted on 04/23/2009 1:09:23 PM PDT by AceMineral (Offically unapproved of since 1973)
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To: nyconse

They will be back at the trough again.


36 posted on 04/23/2009 1:09:28 PM PDT by Anti-Bubba182
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To: Anti-Bubba182

I was just reading details...half the legacy will be stock given to union and the other half will come from Chrysler profits or from government...it was on HuffPO.


37 posted on 04/23/2009 1:11:19 PM PDT by nyconse (When you buy something, make an investment in your country. Buy Amrican or bye bye America)
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To: MikeWUSAF

My husband works for GM as some of you know...the plant is horrible right now...people who are getting laid off vs those who are not, some forcing out of the plus 40 crowd and younger workers vs older workers...it’s not pretty and that’s one plant.


38 posted on 04/23/2009 1:13:11 PM PDT by nyconse (When you buy something, make an investment in your country. Buy Amrican or bye bye America)
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To: MaestroLC
The Treasury has an agreement in principle with the United Automobile Workers union, whose members’ pensions and retiree health care benefits would be protected...

Protect by who, the Taxpayer? Wonder if the bankruptcy judge could nullify this "agreement in principle" anyway.

If the taxpayer is on the hook any further just to support the UAW, there should be a nationwide tax revolt.

UAW = AIG

39 posted on 04/23/2009 1:13:53 PM PDT by DTogo (Time to bring back the Sons of Liberty.)
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To: MaestroLC
The accomplishments of Obama's first 100 days continue to mount...

Chrysler was in deep do do way before obama was even nominated. As another poster mentioned they should have declared bankruptcy last year.

40 posted on 04/23/2009 1:15:27 PM PDT by tc45a
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