Treasury in the process of working out details... could be filed as early as next week.

DETROIT (Reuters) – The Treasury is preparing a Chapter 11 bankruptcy filing for Chrysler LLC that could come as soon as next week, The New York Times reported on Thursday, citing people with direct knowledge of the matter.

The Treasury has an agreement in principle with the United Auto Workers union to protect pensions and retiree health care benefits as a condition of the bankruptcy filing, the paper said.

Italy's Fiat would finalize its alliance with Chrysler while the U.S. automaker is under bankruptcy protection, the paper reported.

Chrysler has until April 30 to complete its partnership with Fiat and win concessions from its first-lien lenders and the UAW, or face a cut-off of government funding and a potential bankruptcy.

The Times said U.S. and Canadian governments were prepared to provide the financing that Chrysler needed to operate while under bankruptcy protection.

It's about time, GM and Chrysler need to reorganize. The imbeciles in Congress unnecessarily wasted billions by delaying the inevitable for a few months.

Is anyone the least bit surprised? The auto companies came out and said they were out of cash months ago.

Good luck getting the goons at the UAW to concede anything. They're all programmed HoffaBots.

WASHINGTON (Reuters) – The Obama administration remains focused on bringing Chrysler and Fiat into a working partnership, a U.S. official said on Thursday, dismissing a news report that the U.S. car-maker faced imminent bankruptcy.

"In a negotiation like this, everything is speculation until there's a deal. It should surprise no one that the administration is planning on contingencies, but we remain focused on the goal and engaged with all stakeholders to bring Chrysler and Fiat to a working partnership," the administration official said.

Chrysler, one of the three pillars of the American auto industry, will file for bankruptcy today after last-minute negotiations between the government and the automaker’s creditors broke down last night, an Obama administration official said. U.S. officials had offered Chrysler’s secured lenders $2.25 billion in cash if they would agree to writedown the $6.9 in secured debt that the company owed. But a small group of hedge funds refused the 11th-hour deal, forcing an imminent bankruptcy .

Just posed this question to a bankruptcy attorney with a major national firm who represents creditors. Kind of interesting how self defeating the unintended consequence can be; especially when my company does so much credit enhancment itself.




Do you think those secured lenders will actually get more through Chapter 11?

Chrysler, one of the three pillars of the American auto industry, will file for bankruptcy today after last-minute negotiations between the government and the automaker’s creditors broke down last night, an Obama administration official said. U.S. officials had offered Chrysler’s secured lenders $2.25 billion in cash if they would agree to writedown the $6.9 in secured debt that the company owed. But a small group of hedge funds refused the 11th-hour deal, forcing an imminent bankruptcy .


doubtful--- unless their claims are insured by someone else.... then they might. One of the unintended consequences of derivatives and credit enhancements is that bond holders sometimes do better if the company files for bankruptcy because they then get paid in full by someone else. It turns the way bk is supposed to work--- a collaborative negotiation with all entities viewing saving the company as the best outcome in situations like Chrysler... on its head.

Is my lifetime limited powertrain warranty still valid? :lol:

:yammer:

http://www.nytimes.com/2008/12/04/business/04auto.html

hope & change abounds!

Nope. Had exactly this conversation yesterday w/ our CFO and atty. Chrysler has jumped the shark on bad decision making... but I guess that shouldn't surprise anyone.

You failed to mention how the UAW now owns FIFTY FIVE PERCENT of Chrysler.

Talk about a conflict of interest. :rolleyes:

Chrysler won't be repaying their $7.2 billion in our 'bailout' money either. What an incredibly ballsy heist by Obama and the UAW. A pay-off, a buy-out, and then screw over the credit-holders while selling the assets to a Euro company.

Stunning...

The UAW makes La Cosa Nostra look like Eagle Scouts, Mud. It comes to no shock for me.