mandymoochops

http://www.bloomberg.com/apps/news?p...4S8&refer=home

And because I didn't quite understand what was going on and why heres an explanation!!!!!

If a company goes into BK court with any hope of surviving and coming out the other side it must have interim financing to operate the company and pay the bills while it's under court protection. Because of the credit crunch last Fall no banks or other lenders are willing to front Chrysler - or GM - the money to restructure.

In the absence of this interim financing the only option is the put a lock on the door and ..
send everybody home forever; but now the workers are still working
sell off the assets; but now some assets will still be making vehicles and profits
let the debtholders collect whatever they can; but now the debtholders get a guaranteed payoff and likely a small profit.

Steve_P

They're not in bankruptcy court yet.

The Treasury Department has sweetened its offer to holders of Chrysler’s secured debt in a last-minute attempt to keep the iconic American automaker out of bankruptcy court, according to people briefed on the matter.

More here: http://www.nytimes.com/2009/04/30/bu...30auto.html?hp

purple80

Bugger!

mandymoochops

I honestly don't think that that will be accepted. With Fiat offering 20%, the pensionholders and the like with 55% and the government with the rest - seems like a simple solution to me.

Steve_P

Bankruptcy is a bit of a misnomer right now.

Chrysler is not going to disappear just yet.

At present it is likely they will file for Chapter 11 which is protection from creditors.

They will reorganize while in this stage and emerge a new company.

mandymoochops

A bit like an easy get out then??? Maybe the same will happen with GM, I know there are something like 6 plants planned for closure in the states and as of next year Pontiac will be no more

(get you parts orders in now people)

quality piece of selling there from me I thought lol

Steve_P

Sort of an easy get out, yes.

Air Canada did it a few years back and they're still around, although it looks like they may have to do it again..

No real need for the hard sell my dear.

GM did say they will produce parts for all discontinued models for tens past the last year the particular model was produced.

Cumbrian Lass

I love my little PT cruiser.....i hope they don't go under

scrubbedexpat091

If they go it will probably be Chapter 11 reorganization which will allow them to continue operating under the guidance of the US Bankruptcy Court and a trustee will be appointed. This would make sense if a deal is going through, as the new owners will want the best chance of success which means a reorganization is due.

I doubt they will go straight to Chapter 7 which is total liquidation of the company and the company ceases to exist.

Canada has similar laws in place where a company can go bankrupt and continue to operate, just can't recall what its called, Air Canada did it a few years back.

Calgal

Hey - on a positive note, it might become a "collectible"

Brownstar

Highly unlikely...........something like a Pontiac Solstice GXP or Pontiac G8 will though

Calgal

Wasn't really meant seriously

Brownstar

Its done...............and these are the cars that killed it

Almost Canadian

CCAA proceedings - http://www.canlii.org/en/ca/laws/sta...85-c-c-36.html

MB-Realtor

We have 2 Chrysler's a leased Nitro (lease ends in July) and a Caliber that has ?had? 2 years left on Warranty. - Bugger....