AP: Chrysler definitely filing for bankruptcy after debt talks "crumbled overnight"
by Chris Paukert on Apr 30th 2009 at 9:59AM 
Building on speculation that first leaked yesterday is word this morning that a pair of Obama administration officials have told The Associated Press that Chrysler will indeed file for bankruptcy. The decision was apparently reached after debtor negotiations with hedge funds "crumbled overnight."
If the AP's sources are correct, we assume that the Chapter 11 announcement will be made quickly – likely later today. According to the report, President Obama is slated to talk about the auto industry at noon, at which point we wouldn't be surprised to hear him break the news.
A bankruptcy filing by the Pentastar is not expected to rule out a merger with Fiat, or indeed, trigger the shuttering of the company. Officials close to the proceedings have already gone on record saying that a deal with the Italian automaker could happen inside or outside of bankruptcy, and that arrangement could be finalized as early as today.
[Source: The Associated Press | Image: Andrew Cutraro/AFP/Getty ]
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Reader Comments (Page 1 of 3)
Aprime 10:05AM (4/30/2009)
I wonder what Memphis has to say now. :D
Reply
MemphisNET 10:40AM (4/30/2009)
I'd love to continue this battle of wits with you, but its painfully obvious you're un-armed.
At least I have an opinion of my own, instead of just listening to what the media has to say. Doom and gloom sells my friend. And you've fallen for it. I also have sympathy for a company that was completely ruined by Daimler, and who knows where they'd be today if the merger hadn't taken place.
You don't have a rational thought behind anything you say other than to get a reaction, so you've got it.
The Luigiian 11:25AM (4/30/2009)
What are you two going on about?
MemphisNET 11:29AM (4/30/2009)
I have a soft spot for Chrysler because I'm a happy owner. Aprime feels im retarded.
MemphisNET 11:34AM (4/30/2009)
I'm being ridiculed for being a happy owner and supporter. There's no real thought process behind his ramblings.
MemphisNET 11:34AM (4/30/2009)
Damn you laggy reply system! *laughs*
Aprime 12:19PM (4/30/2009)
Hey, you're putting words in my mouth and calling yourself a retard there.
The Luigiian 12:42PM (4/30/2009)
Aprime, your claims of language teabagging and self-diagnosis of lower cognitive mental abilities are unfounded. In previous posts you have referred to him as a fanboy and
HOLY CRAP CHRYSLER JUST FILED
OK, gotta go check this out, but yeah. Stop being mean to MemphisNET.
[/whiteknight]
Spiel 12:43PM (4/30/2009)
"I also have sympathy for a company that was completely ruined by Daimler, and who knows where they'd be today if the merger hadn't taken place."
A) You really believe GM would be where it is now and not Chrysler if it wasn't for Daimler? You're serious?
B) You actually believe Daimler was the sole reason Chrysler continues to fail?
The fact that Chrysler remained in business for the past...30 years...surprises me. I have NEVER seen a Chrysler-made car and said to myself "wow, that's nice, I have to buy one". I'll give them innovation for the minivan concept, yet even those where horribly made.
I admire the fact that you drive and support Chrysler, but believing that Chrysler is only where it is now all because of Daimler, well...crazy.
Frank 12:50PM (4/30/2009)
"I have NEVER seen a Chrysler-made car and said to myself "wow, that's nice, I have to buy one". "
Then you've missed out on some very nice *mass market* cars.
If you're into super expensive Euro stuff, then you were never a potential customer anyway, and your comments are not relevant. I'm sure there are some Mercedes and BMW posts somewhere for you to comment on.
Spiel 1:33PM (4/30/2009)
@Frank
You made me think I had alzheimers and I'm only 30. I re-read my post and didn't find anything about Merc or BMW or ultra expensive Euro cars.
While yes it's true my current and past car are European ($35K+ price range), I did also own 2 other American cars prior to, and both were [new] GM and [new] Ford. So I wasn't always bias about American cars, but I did, and still believe that Chrysler-made cars were never a match for GM/Ford in any era, thus my surprise (again, my opinion) on how Chrysler survived this long...and why does anyone even care it continues to. And if I was in the market for a "mass market" vehicle, I sure as heck would check out Honda, Subaru, VW, Ford, GM, Hyundai and Toyota before I'm forced to drive a Chrysler.
Swoop 10:08AM (4/30/2009)
Should have let them and GM file for Chap 11 protection months ago without all the taxpayer money being spent. Smaller, leaner, better companies would have emerged, free of noose of the UAW.
Hopefully they keep Jeep in the new Chrysler, I so want to buy a 4 door Wrangler later this year.
Reply
hypermiler 10:12AM (4/30/2009)
Now that Chrysler is in bankruptcy court, anybody can make a cash bid on specific asset, such as Jeep, to bankruptcy judge.
MemphisNET 10:51AM (4/30/2009)
Yea, they could... but then they'd have to assume all the liabilities that go along with it, incl. technology agreements and potentially long term contracts they may not want.
It will def be interesting to see what will happen next.
hypermiler 10:09AM (4/30/2009)
Banks holding AIG CDS on Chrysler bonds will now be 100% compensated by Uncle Sam.
Reply
Justin 10:10AM (4/30/2009)
I agree with Swoop. We could have really used that money to protect people from swine flu.
Reply
Aprime 10:13AM (4/30/2009)
Because bureaucrats can protect your from [hyped out of control] aerial diseases.
MemphisNET 10:23AM (4/30/2009)
Not unexpected at all - but a shame that a few lenders (which were probably key contributers to the down economy in general) couldn't just take their lumps like everyone else.
I've always thought CH11 was the RIGHT thing for Chrysler and GM. Gives them a chance to break contracts, get legacy costs under control, and come out much leaner than before.
itguy08 3:09PM (4/30/2009)
Yeah, 7 people in the entire world have died from Swine Flu. The sky is falling. Yes, it's horrible that those people died but in the grand scheme of things, that many probably died in the time it took to read this post.
Aprime 10:32AM (4/30/2009)
Hahaha, you're accusing financial companies of being responsible for this mess?