Thursday April 30, 2009

Chrysler to proceed with bankruptcy

This article belongs to the GM, Ford and Chrysler bankruptcy watch story arc.

news.yahoo.com :

Chrysler will proceed with Chapter 11 bankruptcy protection now that talks with debtholders have broken down, an administration official said on Thursday [30 Apr 2009].

- This is breaking news, and the initial report above is all that there is for now. So it looks like Chrysler is going bankrupt first, and GM is probably going to be next. It has been quite a while, since the first postings back in 2006 ("Chrysler plans production cut") and 2007 ("Chrysler struggles to shift unsold inventory").

Update :

bloomberg.com :

Chrysler will proceed today with a Chapter 11 bankruptcy filing to reorganize into a more viable carmaker in a partnership with Italy's Fiat, an Obama administration official said. The president's staff plans to use the filing to pave the way for Fiat to take a 20% stake in Chrysler. If Chrysler has to go through bankruptcy, it won't take long, Obama said. The goal is to finish the bankruptcy in 30 to 60 days, people familiar with the plan said.

- They're making it look like Fiat is some kind of hero white knight. You know, I don't really think so. In fact, I find this purported deal a little odd.

See also :

1. Chrysler plans to cut 10000 jobs
2. GM, Ford, Chrysler face bankruptcy risk on crisis : S&P
3. GM risks bankruptcy as it runs out of cash, losing $73 billion since 2004, suspends Chrysler merger
4. GM, Chrysler may go bankrupt after Senate rejects auto bailout plan as talks collapse
5. GM said to speed bankruptcy plans

(2009-04-30 22:10:19 SGT) [Biz] Permalink

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