President Obama is expected to speak at noon to announce the fate of Chrysler. The New York Times says, "Last-minute efforts by the Treasury Department to win over recalcitrant Chrysler debtholders failed Wednesday night, according to people briefed on the talks. Barring a last-minute agreement, Chrysler was expected to seek Chapter 11 protection, most likely in New York, these people said." [NYT]
Post a comment
Comments:
How much did it cost the taxpayer to keep them out of bankruptcy for this long?
From what I read, they will fire the current executives, replace them with folks from Fiat, and give Fiat about a 30% stake in Chrysler. Sounds like Fiat gets to come in at a much lower price than they would have had to pay if they had agreed to buy Chrysler before bankruptcy.
@laserjobs: too much, considering it just delayed the same result plus gave the government a black eye for getting involved.
Doesn't it seem like the minority of creditors against the deal are gambling quite a bit? If they go thru bankruptcy, the judge could very well cut Crysler's debt to levels below what it's currently offering.
All your company are belong to us.
@sleze69: The government doesn't need to intervene to let a failure fail. That isn't what's happening. This is designed to give the unions and the government control of the auto industry through the use of "government aid".
Nothing like more wasteful spending. Really, what sensible person would invest in a bankrupt company?
@Trai_Dep: When you only have a few chips left in the game might as well bet them all rather than agree to go home with one or two.
@Trai_Dep: Throwing money at the problem was only going to delay the inevitable and everyone knew it. It was widely predicted prior to the bailout, but the pols stuck their fingers in their ears and chanted "too big to fail".
I hear the sticking point was hedge funds. Which doesn't surprise me, because hedge funds screw up everything. AIG was brought down by a division of the company that was essentially acting as a hedge fund, for example.
Thank god. Let failures fail.