Bankruptcy

Chrysler First to go?

By mcbride

Evidently, the US government has made an agreement with the UAW which will then make a Chrysler bankruptcy more likely to succeed.  So now the Treasury Department is ?preparing? a chapter 11 for Chrysler.  And the Fiat merger will happen within the context of that filing.  About that merger, in an article entitled ?Finance it Again Tony? Jamie Kitmen of Automobile Magazine says: ?In exchange for 35% of Chrysler, Fiat proposes to give Chrysler modern engines and platforms and also help retool its plants.?it sounds like a square deal to me.?  No word on how your local Chrysler dealer would do when called upon to repair a Fiat engine under warranty.  But back to the government?s decision to file a major US company in a chapter 11.

?The Treasury Department is preparing a Chapter 11 bankruptcy filing for Chrysler that could come as soon as next week, people with direct knowledge of the action said Thursday. The Treasury has an agreement in principle with the United Automobile Workers union, whose members? pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing, said these people, who asked for anonymity because they were not authorized to discuss the case.?

Link: http://www.msnbc.msn.com/id/30366383/

Michael

Full post as published by Texas Lawyer Blog on April 24, 2009 (boomark / email).