Officially, Official: Bankruptcy judge approves sale of Chrysler assets
by Sam Abuelsamid on Jun 1st 2009 at 8:55AM 
Late Sunday night, U.S. bankruptcy Judge Arthur Gonzalez approved the sale of Chrysler's remaining good assets to a group that includes the UAW VEBA health care trust, Fiat, and the U.S. and Canadian governments. The union will get a 68% stake, Fiat gets 20% and the governments split the rest. Gonzalez over-ruled virtually all objections to the deal on the grounds that the best chance of preserving any value in the assets was to move ahead with the sale. The only other viable alternative was liquidation, which would likely only bring a small fraction of the potential value in keeping the company alive.
Gonzalez cited the public interest as one of the reasons to move ahead with the sale. Because the billions of dollars in loans from the two governments, keeping the company alive it was decided that this course of action was the best opportunity for some repayment. Senior lenders will receive $2 billion, or about .29 cents on the dollar of the debt currently owed by Chrysler. Some 90 percent of the company's senior lenders were reportedly in support of the deal.
The "new" Chrysler will henceforth be known as Chrysler Group LLC.
[Source: Reuters]
Reader Comments (Page 1 of 2)
Jake 9:01AM (6/01/2009)
Overheard inside Fiat board room:
"Hey-uh boss-uh, we just-uh became-uh 20% owners in-uh Chrysler. "
"Who owns-uh the rest-uh?"
"The Union, the US government-un, and the Canadian-uh government-uh."
"Oh-uh Crap-uh!"
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Lanehog 6:59AM (6/02/2009)
Booooo...
Inigo 9:31AM (6/01/2009)
You're an idiot.
fixitfixitstop 9:40AM (6/01/2009)
Jake, do you actually know any Italians?
Jake 9:52AM (6/01/2009)
Yes, I know several Italians. I go there on business occasionally. That's my text-based take on Italian-accented English. Sorry if that offends you, they probably make light of how Americans sound trying to speak Italian as well.
Randy 1:16PM (6/01/2009)
I'm Italian!
Here's! I'll grade your attempt!
Overheard inside Fiat board room:
"Hey boss-uh, we just-uh became-uh 20% owners in-uh Chrysler. "
---- No one uses the word "Boss" because it gives a clear picture as to whom is running the show. Feds are always listening (i've heard).
---- Also, the "Boss" should already know La Familia has a 20% piece of Chrysler. No "Boss" would ever give a "Captain" a "Crew" or a "Soldier" for that matter such a big opportunity.
So complete FAIL on the opening and the rest of it just wouldn't have happened!
Here's how it REALLY would have happened!
Guido: "Hey Bobby, I went to Fabrizi's and got one of those new Rum cakes. It was unbelievable. I ate so much before I could only eat two bites my a piece.
Bobby: You bring me a piece?
Guido: Of course, here you go!
Bobby: What you do with the rest of it?
Guido: I gave some to the guys down at the factory (i.e. Union) and sent some to that Sammy (i.e. Uncle Sam) and his neighbor Jacky (i.e. Jacque / Sammy's neighboring Frenchman).
So please! If you want to disrespect Italians, get it right you pezzo di merda.
Judy Zik 2:16PM (6/01/2009)
@Randy
Way too funny!
Only problem is the Canadian Government is not a Frenchman. French is one of two official languages here but a minority of the population. Also all the auto plants in Canada are in Southern Ontario where French is generally only spoken in classrooms. We are all a bit guilty of cultural ignorance and in need of thicker skins.
AUTOMANIAC 1:54PM (6/01/2009)
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EVan 9:16AM (6/01/2009)
This is great news. Let's hope to see some new ideas rolling out in the next few month's as well.
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BigWill 9:28AM (6/01/2009)
"Gonzalez cited the public interest as one of the reasons to move ahead with the sale"
That and the call from Obama telling him to rule quickly or else.
http://apps.detnews.com/apps/blogs/autosblog/index.php?blogid=746
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Inigo 9:32AM (6/01/2009)
My last comment was directed at Jake.
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cwalkerjr 9:35AM (6/01/2009)
yeah....we kinda figured since it was, like, replied under his comment.
;)
cwalkerjr 9:38AM (6/01/2009)
This has to be the best airline captain impersonation I've heard all week.
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cwalkerjr 9:40AM (6/01/2009)
Dang it. this was supposed to be a reply to Jake.
I blame Inigo.
Jake 9:54AM (6/01/2009)
Yes, idiot, I got that.
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Henry 9:56AM (6/01/2009)
Does this mean that Chrylser has to change its name again?
Think of it as a stimulus package for sign makers and business card printers.
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doug delano 10:46AM (6/01/2009)
I still can't find anywhere how Daimler, with it's 20 % of Chrysler fits into all of this. (??)
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viper GTS-R 11:09AM (6/01/2009)
Wait till Gonzalez finds out that most of the stuff will be liquidated. As far as we know the UAW wants no part in this, they want to get rid of their stake in stock or whatever ASAP. So now this is great, the government has huge stakes in GM and Chrysler, now my warranty and all my paperwork feels like a giant tax...I do not see Chrysler pulling out of this like they expect it to. Lots of good dealers that have been around for years that got axed for not combing all three brands under one roof and not being able to sell as many cars as expected and now most are creating petitions to stay alive. What really sucks is there's alot of people that depend on having service done on the cars locally by the same mechanic and not 30 minutes away on the busiest road in the state. Daimler gave back their 20% before all this crapola happened, that's why Fiat is getting it.
--RS
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Frank 11:26AM (6/01/2009)
Now that Chrysler will be coming out of BR and GM is going into it can we start posting "Just let GM die so Chrysler and Ford can live" comments like we had to endure when it was Chrysler those people wanted to "die"? Fairs, fair, right?
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Devon 12:35PM (6/01/2009)
Nope, still want Chrysler to die. Sorry.