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

[The Duke]

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

Of course not. They're doing it for a corrupt union.

[Anti-Bubba182]

Well that means the Unions Will get stiffed if they are relying on profits and stock value but, the article said that, “pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing”. How far is the government going to go to “Protect” the retirees? Are they going to write checks if Chrysler does not make a profit or the stock price stays in the toilet?

[nyconse]

Well, let’s hope for success because then Chrysler would pay legacy costs to the union which is taking it over and not the taxpayer.

[PhiKapMom]

Why are the Feds preparing the paperwork and not Chrysler? That is not their job!

[Jim Robinson]

We the tax payers pick up the tab.

[kidd]

Since when does the Treasury department file banruptcy for a private company? This doesn’t smell right at all.

[bert]

The next day, it will be open season on the UAW. They must not be allowed to persist.

[nyconse]

Half of the costs will be given the UAW in the form of stock, the other half will be given to the UAW over a ten year period by Chrysler or more likely Fiat...if for some reason, the company could not meet the Legacy obligation, the government will guarantee it.

[Liberty1970]

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

Yeah, sure. Why should they when they can walk away from the deal and then buy the pieces they want for basically nothing? Unless Obama can strong-arm them, which I doubt. More likely, he'll make them an offer they can't refuse - and the taxpayer will once again be expected to pay for his "great" ideas.

[Petronski]

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

[Paine in the Neck]

So UAW abuses a company until there’s nothing but a hollowed out husk, realize they’ve killed the milk cow, then cry to Obama who says “Not to worry, we’ll just savage the taxpayer now.” We’ve all been Gettelfingered.

[nyconse]

Fiat is still in the deal...the reason for this is the bondholders have refused to budge...they get stiffed. Also, I don’t think the bondholder will get their credit default swap money this way either. Perhaps they will accept the government offer and this bankruptcy will be avoided.

[TenthAmendmentChampion]

Can the bondholders stop this? How do the unions come before the bondholders??

[paul51]

yes. well done comrade

[Anti-Bubba182]

"...if for some reason, the company could not meet the Legacy obligation, the government will guarantee it."

There you go! The taxpayers are paying it. There is little chance of Stock prices or profits equal to the cost of the pensions and health care.

[Lurker]

It’s just about time.....

[Mad_Tom_Rackham]

["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..."]

We are being sheared like fat sheep.

[TenthAmendmentChampion]

Have you seen this? Everyone’s saying this is another 0 accomplishment. The customized bankruptcy certainly is.

[Spktyr]

The UAW is one of the biggest bondholders, and they didn’t budge either.

Wonder why.

[happygrl]

I wish my 401K would have been protected...Can you spare a bailout brother?

Obviously you're not in one of the favored classes of the People's Republic of the US.