There was a minority group of some 20 Chrysler lenders that were fighting the repayment arrangements Chrysler was trying to make before Chrysler declared bankruptcy. Led by Oppenheimer and Stairway Capital, they were owed $2.9 billion and didn't feel they were getting all they could. After Chrysler declared bankruptcy the group continued to fight the repayment arrangements, saying they we
The same creditors who President Obama scolded last week for preventing Chrysler from restructuring outside of bankruptcy have filed objections in bankruptcy court against the automaker's plan to reemerge as a new company owned in part by Fiat. Chrysler has about $6.9 billion in debt that it owes to banks and hedge funds, and those entities who hold the I.O.U. for $4 billion of that debt have already agreed to accept $2 billion and walk away happy with the knowledge that it's better than nothing
In the midst of being taken over by Fiat ("alliance" sounds too egalitarian) and filing for Chapter 11 bankruptcy last week, Chrysler LLC fears that potential shoppers might forget that it's still in the business of selling cars and trucks. This sounds like a job for the
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.
Chrysler's ENVI line of concepts - Click above for a high-res gallery of the Dodge Circuit EV
President Obama has just concluded a televised press conference where he announced that Chrysler will indeed head into Chapter 11 bankruptcy proceedings almost immediately. As part of the same announcement, he noted that the Auburn Hills automaker has reached terms with Fiat and will be headed into a partnership agreement that will include a cash infusion and technology transfers. By some estimates, the restructuring is expected to take 30-to-60 days.
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 Frank Filipponio
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.
After yesterday's Chrysler news regarding the first-lien holders and the U.S. Treasury coming to terms, we hope none of you thought the Pentastar had gotten off the see-saw. The latest tidbit comes from Fiat CEO Sergio Marchionne, but it comes via CAW head Ken Lewenza. According to Lewenza, Marchionne said that with two days left before Chrysler's got to show viability or go under, th
As in a basketball game when players are yanking on jerseys trying to block each other out under the basket, General Motors and Chrysler's creditors have officially begun jockeying for position.
Is that 'B' as in bankruptcy or 'B' as in bailout? Probably 'B' as in both. Regardless of the buzzword you choose to slap on the respective situations General Motors and Chrysler find themselves in, it's not good, and Ford realizes this fact just as clearly as the rest of us. In response, the Blue Oval has embarked on a new plan to pick up as much market share as possible.
The Wall Street Journal is reporting that Chrysler LLC has retained the services of law firm Jones Day, which specializes in representing companies as they go through the process of filing for Chapter 11 bankruptcy. Chrysler reportedly hired the law firm several weeks ago, anticipating that its counsel may be required if the $7 billion in government bridge loans it has requested are not approved before the end of the year. Sources say that Corrine Ball is the lawyer tasked with handling Chrysler
Mitt Romney, former Massachusetts governor, former entrant in the marathon to win the White House, and current automotive industry expert (who knew?) had a few things to say in the New York Times today on the potential auto industry bailout. The opening paragraph says it all: "IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guarantee
Despite recent rumblings to the contrary, both General Motors and Chrysler claim that they will not be going bankrupt any time soon. Still, as much as the two American automakers would love to quell fears of unsustainable liquidity, questions remain, especially as the pickup market in the United States continues to dwind
Despite the fact that Chrysler shares are no longer sold on the stock market, rumors regarding the company's financial standing continue to haunt the number three domestic auto manufacturer in America. Last week, rumors regarding the negative cash flow were so rampant, a company spokesperson went out of his way to deny that the automaker was headed towards bankruptcy. Now, despite constant assurance from Chrysler that it's hitting all of its internal goals, the lack of announced future product a
