Bankruptcy

Chrysler to File Today or Tomorrow

By mcbride

News reports now say that a negotiated resolution to Chrysler?s financial ills have stalled, causing the large automaker to file for chapter 11 as soon as today or  tomorrow.

?The Chapter 11 filing, which sources said would be done in U.S. Bankruptcy Court in Manhattan, will send shock waves through the entire auto industry — including Chrysler’s rivals, suppliers, dealers and the many hundreds of thousands who rely on the industry for their livelihoods?.A bankruptcy filing does not preclude a deal with Fiat. Chrysler has been seeking a rescue deal from the Italian automaker while also trying to finalize its debt agreement.  Before the bankruptcy news, signals about the discussions with Fiat were mixed. The Italian newspaper Corriere Della Serra reported on Thursday morning that a deal had been signed, but Fiat later denied this.  The debt restructuring talks have been spearheaded by the Obama administration’s autos task force and former investment banker Steve Rattner.?

Here is a link to one article on this topic: http://www.reuters.com/article/newsOne/idUSTRE53S8F620090430

Michael

Full post as published by Texas Lawyer Blog on April 30, 2009 (boomark / email).