Obama Said to Plan for Chrysler Bankruptcy, Alliance on 4/30

Obama Said to Plan for Chrysler Bankruptcy, Alliance on 4/30

www.bloomberg.com

y Mike Ramsey and Christopher Scinta

April 29 (Bloomberg) -- President Barack Obama aims to announce tomorrow that Chrysler LLC will be placed into Chapter 11 bankruptcy, leading to an alliance with Italian automaker Fiat SpA, people involved in the matter said.

Administration officials are still resolving outstanding issues, and the plan isn’t finished, said one of the people, who declined to be named because discussions are private.

As part of negotiations, the U.S. Treasury raised its offer to Chrysler’s lenders to $2.25 billion in cash to forgive $6.9 billion in secured debt,

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The bankruptcy of Chrysler. Fan freakin tastic... Did they ever get bailout money. And if so, what for?

First big domino to fall??? GM next?? Amazing no one asked this in the press conference today. All he said was he wanted to get out of the auto industry. I would think Chrysler falling is huge enough to ask but oh well

www.bloomberg.com
(visit the link for the full news article)

Here is a quote from a past article on bailout plans for Chrysler.

Chrysler seeks $5 billion, in addition to $4 billion already received.

Their viability plans, submitted to meet a deadline imposed by the Treasury, sketched a progress report on steep cost cuts and restructuring plans that the companies said would put them on a path back to profitability.

It won’t be easy. Before they win new government backing, they need to convince an Obama administration task force on the auto industry that their plans are realistic.

It looks like Chrysler couldn't convince Obama or the administration that the extra 5 billion would change the situation.

In all honesty this is horrible that so many people are going to lose their jobs but how far can these bailouts go.

We can't keep bailing out failing company's only to have them fail again after already getting hefty loans that they won't realistically be able to pay back.

So I don't get it, if Chyrsler files bankruptcy are they done with and all their employees lose their job? They say if Chrysler files then they will form an alliance with Fiat, so I am confused, if they file are they done with or will Fiat take over and all Chrysler employess will still work but just for Fiat instead of Chrysler?

The AP has just announced that Chrysler is filing for bankruptcy... because they failed to reach an agreement with some of their creditors but that the merger with Fiat is expected to continue.

www.huffingtonpost.com...

reply to post by grover


I think it means FIAT, an overseas company is getting pennies on the dollar. OUR tax dollars.....


Sickening


As for the jobs, they better not. Or I'll personally run FIAT out of town.