Planning for the future is perhaps an alien concept to big business – even automakers, with their protracted product development cycles. Take a cue of what not to do from them, then, and start planning now for next Christmas. May we suggest that your 2010 wishlist starts with what's destined to be a hotly-anticipated tome: Steven Rattner's memoir of his spearheading the bailout of General Motors and Chrysler. Tentatively titled "Overhaul," the cloyingly-named book will tell the story of th
Now that the court documents have officially been filed, details regarding Chrysler's ongoing plans to stay in business are becoming a bit less muddy. Two corporations will be created from the dying automaker: a so-called "OldCo" with unwanted bits and liabilities that seem likely to die a slow and painful death through the automaker's Chapter 11 filing, and a "NewCo" that contains the best that the ailing automaker has to offer.
It looks like the concessions and government intervention aren't going to be enough to keep Chrysler out of bankruptcy. The AP is reporting that talks between Chrysler's lenders and the Treasury Department have broken down, meaning the company will not be able to reduce its $6.9 billion in secured debt. That debt reduction was seen as one of the last pieces of the puzzle in keeping Chrysler out of bankruptcy following the union concessions that had been made earlier this week.
According to a report by Bloomberg citing the usual unnamed sources, President Obama will announce tomorrow that Chrysler will file for Chapter 11 bankruptcy while continuing to work on its alliance with Fiat.