Chrysler to File for Bankruptcy Protection (Chapter 11)

[hampstor]

NEW YORK (CNNMoney.com) -- Chrysler LLC is going to file for bankruptcy, an administration official confirmed to CNN Thursday.

The filing comes after some of the company's smaller lenders refused a Treasury Department demand to reduce the amount of money the troubled automaker owed them.

Chrysler officials had no comment on the bankruptcy report. The company faces a Thursday deadline from the Treasury Department to reach deals with creditors who had loaned the company about $7 billion.

But the filing will not mean the halt of operations or liquidation for the troubled 85-year old automaker. Instead, the administration expects to use the bankruptcy process to join Chrysler with Italian automaker Fiat.

In addition, the United Auto Workers union announced late Wednesday night that its membership at Chrysler had overwhelmingly ratified a concession contract reached between the company and union leadership on Sunday night.

http://money.cnn.com/2009/04/30/news...ion=2009043009


http://www.autoblog.com/2009/04/30/a...s-crumbled-ov/

[jebbinksky]

http://www.motorauthority.com/fiat-a...-alliance.html

Its official. Chrysler is bankrupt.

[Redlyne_mr2]

They should have done this years ago.

[Tarrantula]

Crazy shit.

[kaput]

.

[Jlude]

Originally posted by Redlyne_mr2
They should have done this years ago.

Yes they should have... but ignorance led them to believe they could do no wrong.

[hampstor]

shitty thing is, UAW will now own a majority share in Chrysler. So much for breaking up the UAW.

[Xtrema]

Originally posted by hampstor
shitty thing is, UAW will now own a majority share in Chrysler. So much for breaking up the UAW.

http://www.autoblog.com/2009/04/30/u...te-to-control/

[hampstor]

Originally posted by Xtrema


http://www.autoblog.com/2009/04/30/u...te-to-control/

I am aware of this (hence my wording of own a majority share vs. controlling share), but good point - im sure someone here will see that as a controlling share. However, I am glad that retiree funds are protected. It'd be sad if a retiree had to go try and find work because his retirement fund got fucked over after working most of his life at Chrysler.

[masoncgy]

Why the government didn't just let Chrysler fall into bankruptcy protection in the first place instead of forking over billions to keep them afloat over the last few months is beyond me... talk about a waste of taxpayer dollars.

Ugh...

[BerserkerCatSplat]

Originally posted by masoncgy
Why the government didn't just let Chrysler fall into bankruptcy protection in the first place instead of forking over billions to keep them afloat over the last few months is beyond me... talk about a waste of taxpayer dollars.

Ugh...

Perhaps the 400 million dollars the UAW contributed to Obama's campaign would be the reason he keeps bailing them out so they don't have to make concessions, and is now basically going to give them the company.

Bought and paid for.

[benyl]

Originally posted by hampstor
shitty thing is, UAW will now own a majority share in Chrysler. So much for breaking up the UAW.

Haven't read much about this, but I am pretty sure that when a company declares bankruptcy, all current shares are worthless.

[TorqueDog]

Nice thing about the UAW having a major financial interest in Chrysler is that they will now suffer directly if they continue to gouge the company for all its cash.

[chkolny541]

could anyone be surprised, shittiest car make out there

[Xtrema]

Originally posted by BerserkerCatSplat


Perhaps the 400 million dollars the UAW contributed to Obama's campaign would be the reason he keeps bailing them out so they don't have to make concessions, and is now basically going to give them the company.

Bought and paid for.

But at least Obama still willing to send it (and GM) into bankruptcy.

He also did not interfere when both companies are choping 50% of the workforce. The as unbias as you can get.

[BerserkerCatSplat]

Originally posted by Xtrema


But at least Obama still willing to send it (and GM) into bankruptcy.

He also did not interfere when both companies are choping 50% of the workforce. The as unbias as you can get.

Baloney, if he were willing to send them into bankruptcy why didn't he do it six months ago instead of throwing ten billion dollars down the toilet? Everyone else saw the writing on the wall.

The UAW looks to be getting 40% of GM and 51% of Chrysler, for doing what? Refusing to make concessions? Right.

[benyl]

Originally posted by BerserkerCatSplat


Baloney, if he were willing to send them into bankruptcy why didn't he do it six months ago instead of throwing ten billion dollars down the toilet? Everyone else saw the writing on the wall.

He has only been in power for 100 days. That is just over 3 months.

This is all Bush's fault... haha

[kevie88]

Originally posted by benyl


He has only been in power for 100 days. That is just over 3 months.

This is all Bush's fault... haha

Yes it is.. or at least the Bush regime's

it's amazing watching the Republican media's in the US saying the economy is all Obama's fault lol

[BerserkerCatSplat]

Originally posted by benyl


He has only been in power for 100 days. That is just over 3 months.

Haha, that is true. However, you can't disagree that the bulk of the bailout action was done under his administration and he had ample time to choose the bankruptcy route.

[sputnik]

Originally posted by BerserkerCatSplat


Perhaps the 400 million dollars the UAW contributed to Obama's campaign would be the reason he keeps bailing them out so they don't have to make concessions, and is now basically going to give them the company.

Bought and paid for.

Source?