It is difficult not to be entertained by the coverage on the meteoric plunge towards bankruptcy that is Chrysler. The Journal article is pretty circumspect about some rather important details, failing even to mention bondholders until the 18th paragraph in a 19 paragraph article. The deep and heartfelt sacrifices the UAW is making are front and center:
The United Auto Workers union would eventually own 55% of the stock in a restructured Chrysler LLC under the deal reached by the union and the auto maker, according to a summary of the agreement that was reviewed by the Wall Street Journal.
Fiat SpA "eventually" will own 35%, and the U.S. government and Chrysler's secured lenders together will end up owning 10% of the company once it is reorganized, that summary said.
Hmmm, employee owned and operated. Where have we heard that before?
The Washington Post, however, claims to have the scoop on bondholders with:
The Treasury Department reached an agreement with Chrysler's creditors late last night that may prevent the troubled automaker from going into bankruptcy, a source familiar with the matter said this morning.
The carmaker had owed a fractious group of 45 banks, hedge funds and other firms about $6.9 billion. These creditors have agreed to write down the debt to $2 billion, the source said.
As long as one can watch from a distance, this charade is quite entertaining.
UAW to Get 55% Stake in Chrysler for Concessions [The Wall Street Journal]
Chrysler Creditors Agree to Deal With Treasury [The Washington Post]