Apparently, victory in the Chrysler battle will be announced presently:
President Barack Obama plans to announce tomorrow morning that Chrysler LLC will be placed into Chapter 11 bankruptcy leading to an alliance with Italian automaker Fiat SpA, people involved in the matter said.
Administration officials are still trying to resolve outstanding issues, and the plan is not finished yet, said one of the people, who declined to be named. If there’s a bankruptcy filing, it could come as soon as tomorrow, the people said.
We will keep you up to date as we are.
Obama Said to Ready Plan For Chrysler Bankruptcy, Fiat Alliance [Bloomberg]
What’s with the push for a merger/alliance with Fiat?
and boom goes the dynamite
Inconceivable!!!
@1 avoids complete liquidation and potentially “saves jobs”.
I hope this works out as well as the GM/Fiat tie-up…
Suck it, Trebek.
Are Chrysler’s banks SOL?
Where will the bankruptcy be filed? Will this end up in a district court in Michigan with a hometown judge who doesn’t mind shafting the Wall St financiers and helping out the retirees?
Everyone relax. The current CEO of the 2 failed car companies and a countless number of tarp funded banks now has the board of directors stacked in his favor with yesterday’s quorom majority, filibuster proof turn of events. He can do anything he wants and no one will stop him. Change… you can’t control anymore. Obama/Biden ’08.
restructuring at cerberus coming soon…
@3 – I do not think that word means what you think it does.
How much did Cerburus have in this deal? And whatever happened to that dumbass from GE, Nardelli?
Yeah, Nardelli sure has the Midas touch, doesn’t he? Let me know where he will land next so I can get out ahead in shorting it.
So many reports they’ve got a deal, so few announcements of a deal.
11 + Fiat is the new 7
“Wu, weren’t the Cerberus guys supposed to be, like, really smart?”
~Blond Thug
The Big Lebowski
@13 – testing the waters? You know, float the idea that Chrysler will be in bankruptcy court tomorrow and see how the market responds.
If the market had tanked on the news, Treasury could have just backpedaled.
Maybe it’s bad for the bondholders that the market didn’t seem to give a damn.
@16– you think Chrysler bankrupcty is bad news??!?! When they and GM declare bankruptcy, you will hear a very loud, collective sigh of relief across the nation as taxpayers are comforted to know their downside has been limited to several billions in loss, rather than untold trillions…
I don’t think the government is looking at market reaction. If the creditors agree, the government hasn’t deprived them of their rights, has it? Sure, they’re leaning on them to concede, but that’s negotiating. And maybe the government is tying the bank concessions to regulatory treatment, which I think is bad policy but isn’t really a market-moving surprise from this Administration.
If anything, it’s more likely that they’re trying to pressure some holdouts. Maybe they’re trying to show there is a deal, and that the holdouts are somehow better off agreeing rather than being forced. Or, they’re setting up the holdouts as anti-job bad guys if they sink the whole thing.
Or, it’s just hard to stitch all the details together.
Market reaction? Your markets are a crock.