Chrysler to file for bankruptcy

[Bindare_Dundat]

Some lenders refuse offer to reduce debt, leading to likely bankruptcy filing. But Chrysler expected to remain in business and complete deal with Fiat.

Chrysler LLC is going to file for bankruptcy, an administration official confirmed to CNN Thursday.

The filing comes after some of the company's smaller lenders refused a Treasury Department demand to reduce the amount of money the troubled automaker owed them.

Chrysler officials had no comment on the bankruptcy report. The company faces a Thursday deadline from the Treasury Department to reach deals with creditors who had loaned the company about $7 billion.

But the filing will not mean the halt of operations or liquidation for the troubled 85-year old automaker. Instead, the administration expects to use the bankruptcy process to join Chrysler with Italian automaker Fiat.

In addition, the United Auto Workers union announced late Wednesday night that its membership at Chrysler had overwhelmingly ratified a concession contract reached between the company and union leadership on Sunday night.

President Obama said during a press conference Wednesday night that he was more confident than he had been 30 days ago that Chrysler would be able to emerge from the process as a healthy, competitive company. He is set to comment on the state of the auto industry at noon on Thursday.

The administration said Wednesday evening that talks with the smaller lenders broke down when they refused to meet a deadline set by the Treasury Department to accept pennies on the dollars they had loaned the company.

"After a month of tireless negotiations, the Administration went into yesterday afternoon with the full support of Chrysler's key stakeholders, including the [United Auto Workers union] and the largest creditors. That support remains," said an administration official.

[bigdumbbell]

good now let GM do the same

[tonymctones]

"After a month of tireless negotiations, the Administration went into yesterday afternoon with the full support of Chrysler's key stakeholders, including the [United Auto Workers union] and the largest creditors. That support remains," said an administration official.

LOL they didnt finish this quote it said something to the effect of the creditors that held bad debt didnt act in the nations best interest  STFU the ppl that invested in that company are just supposed to take a bigger hit then the one they will already be taking so these stooges in washington and the Unions can come away with their very own car company?

here it is

"While the administration was willing to give the holdout creditors a final opportunity to do the right thing, the agreement of all other key stakeholders ensured that no hedge fund could have a veto over Chrysler's future success," said one of the administration officials.

the right thing? the RIGHT FUKING THING? how about doing right by the ppl they represent and not screwing them over? I feel better about letting a business that doesnt make money go under then asking ppl who hold stock in it take one for the team for some of the same ppl who are drove this company in the ground to begin with to end up coming out of it better.  makes me sick

[Hereford]

If Chrysler doesn't drop the unions big time during the backruptcy proceedings, this will obviously be a farce. I smell a GM plan here; sell off off all the assets and pay off the unions, then throw the remaining burden onto the taxpayers.

[tonymctones]

If Chrysler doesn't drop the unions big time during the backruptcy proceedings, this will obviously be a farce. I smell a GM plan here; sell off off all the assets and pay off the unions, then throw the remaining burden onto the taxpayers.

we are already getting fuked i dont think chrysler will make it out, what vehicles do they have that are good sellers? the 300? LOL.

GM might make it out of bankruptcy but even then what vehicles do they have that chevy doesnt?

so maybe they both go under for good, then however much money the tax payers put into them what 100's of billions...SHAFT  the taxpayers ought to be the first ones paid back through their liquidation b/c we were the last ones that should have been putting money in...but i cant say i believe this is what will happen

[OzmO]

I wonder what the ripple effect will be if those 2 go completely under.

[drkaje]

I wonder what the ripple effect will be if those 2 go completely under.

Will the cash infusion from the taxpayers prevent knowing the full picture?

[tonymctones]

I wonder what the ripple effect will be if those 2 go completely under.

No worries OZ i have no doubt in my mind that the tax payers arent done financing these companies even after bankruptcy...Im gonna walk into a chrysler dealership and just get in a car and drive off and if anybody stops me im gonna tell "bitch you know who I am? i own this damn place" 

Seriously though obama isnt done throwing money at this problem... there arent enough emoticons to say it all

[Hereford]

we are already getting fuked i dont think chrysler will make it out, what vehicles do they have that are good sellers? the 300? LOL.

GM might make it out of bankruptcy but even then what vehicles do they have that chevy doesnt?

so maybe they both go under for good, then however much money the tax payers put into them what 100's of billions...SHAFT  the taxpayers ought to be the first ones paid back through their liquidation b/c we were the last ones that should have been putting money in...but i cant say i believe this is what will happen

No, the shareholders and bondholders should be the first ones paid. However, you just know the CEO's and upper management will loot the store first, then the UAW will take everything they can get their hands on... including a blank check from the left-wing government we currently have.

[tonymctones]

No, the shareholders and bondholders should be the first ones paid. However, you just know the CEO's and upper management will loot the store first, then the UAW will take everything they can get their hands on... including a blank check from the left-wing government we currently have.

I disagree I feel for them i really do i dont blame them at all for thinking about themselves first but they made the decision to invest or give credit to this company. We as tax payers got not say in it what so ever this is why i think we should be paid back first and foremost.

[Hereford]

I disagree I feel for them i really do i dont blame them at all for thinking about themselves first but they made the decision to invest or give credit to this company. We as tax payers got not say in it what so ever this is why i think we should be paid back first and foremost.

Yes, but the government fully supports these organized crime outfits. The UAW has singlehandedly crushed the American auto industry, just like their bretheren did to the steel industry, textile industry, manufacturing, etc. Do you think the Big 3 would deal with the labor chokehold if the gvt wasn't backing them? I just don't see how a company making billions a year can be going broke....until you look at the sheer mind-blowing cash flow going down the union rathole.

The bondholders have got just as screwed buy the backroom dealings organized crime and the federal gvt have made as the taxpayers.

[shootfighter1]

Chrysler has several good cars: the Charger (which is a great selling solid car), seabring, 300, avenger, viper (limited buyers) and new challenger out this year.  Even though the charger and challenger are muscle cars, they are getting 25mpg highway with the V-8.  Thats pretty darn good for a powerful engine.

[Soul Crusher]

No worries OZ i have no doubt in my mind that the tax payers arent done financing these companies even after bankruptcy...Im gonna walk into a chrysler dealership and just get in a car and drive off and if anybody stops me im gonna tell "bitch you know who I am? i own this damn place" 

Seriously though obama isnt done throwing money at this problem... there arent enough emoticons to say it all

Let them go bankrupt.  No more bailouts. 

[Hereford]

Let them go bankrupt.  No more bailouts. 

No way, not gonna happen. They need those union votes.

[Soul Crusher]

No way, not gonna happen. They need those union votes.

Screw the union.  They are a pig flue on the nation. 

[tonymctones]

Yes, but the government fully supports these organized crime outfits. The UAW has singlehandedly crushed the American auto industry, just like their bretheren did to the steel industry, textile industry, manufacturing, etc. Do you think the Big 3 would deal with the labor chokehold if the gvt wasn't backing them? I just don't see how a company making billions a year can be going broke....until you look at the sheer mind-blowing cash flow going down the union rathole.

The bondholders have got just as screwed buy the backroom dealings organized crime and the federal gvt have made as the taxpayers.

I agree, but like i said the investors/bond holders etc...chose to deal with this company we as tax payers got our money handed to them to the majority of our dismay...Horrible shit man

[240 is Back]

Let them go bankrupt.  No more bailouts. 

this results in 4 to 6 million people losing their jobs in 2 months.

Then another million or two when those 4 to 6 stop their spending.

I'm a little nervous about 6 million desperate ppl on the streets, along with a few million more paupers who just lost their pension.

I mean, maybe you're ready to walk out your door every day and face one of these ten million desperate beggars/criminals.  but I'd prefer not to.

[Soul Crusher]

this results in 4 to 6 million people losing their jobs in 2 months.

Then another million or two when those 4 to 6 stop their spending.

I'm a little nervous about 6 million desperate ppl on the streets, along with a few million more paupers who just lost their pension.

I mean, maybe you're ready to walk out your door every day and face one of these ten million desperate beggars/criminals.  but I'd prefer not to.

So every failed business is allowed to put a gun to the head of taxpayers?

[240 is Back]

So every failed business is allowed to put a gun to the head of taxpayers?

Nope.  They *should* be allowed to fail.  What sucks is that we have the Big 3, not the Big 20, which would allow for smaller failures of some, and successes of others.  Monopolies and unions caused this, as did the politicians who signed off on it.

However, the sudden influx of 6 million desperate MFers into society is a dangerous thing.  Given no other options, crime is gonna skyrocket.  None of us wants to live in the USA with 8 or 10 million new desperate people on the streets.  You think swine flu is bad now?  Wait til it spreads thru huge homeless camps.  Wait til gangs of vagrants grab you outside the grocery store.  Your glock is nice, but when you have 4 weapons pointed at you, pissing your pants is the only option champ.

[tonymctones]

this results in 4 to 6 million people losing their jobs in 2 months.

Then another million or two when those 4 to 6 stop their spending.

I'm a little nervous about 6 million desperate ppl on the streets, along with a few million more paupers who just lost their pension.

I mean, maybe you're ready to walk out your door every day and face one of these ten million desperate beggars/criminals.  but I'd prefer not to.

thats the way business works bro, you instead want to keep throwing money into a business that makes no profit basically taking my money and giving it to others? ya obama doesnt want to spread the wealth around or nothing I wonder where they get that crazy talk?

[Soul Crusher]

Nope.  They *should* be allowed to fail.  What sucks is that we have the Big 3, not the Big 20, which would allow for smaller failures of some, and successes of others.  Monopolies and unions caused this, as did the politicians who signed off on it.

However, the sudden influx of 6 million desperate MFers into society is a dangerous thing.  Given no other options, crime is gonna skyrocket.  None of us wants to live in the USA with 8 or 10 million new desperate people on the streets.  You think swine flu is bad now?  Wait til it spreads thru huge homeless camps.  Wait til gangs of vagrants grab you outside the grocery store.  Your glock is nice, but when you have 4 weapons pointed at you, pissing your pants is the only option champ.

Thats why I recently bought the 870, AR, AK, and G26    

[tonymctones]

Nope.  They *should* be allowed to fail.  What sucks is that we have the Big 3, not the Big 20, which would allow for smaller failures of some, and successes of others.  Monopolies and unions caused this, as did the politicians who signed off on it.

However, the sudden influx of 6 million desperate MFers into society is a dangerous thing.  Given no other options, crime is gonna skyrocket.  None of us wants to live in the USA with 8 or 10 million new desperate people on the streets.  You think swine flu is bad now?  Wait til it spreads thru huge homeless camps.  Wait til gangs of vagrants grab you outside the grocery store.  Your glock is nice, but when you have 4 weapons pointed at you, pissing your pants is the only option champ.

LOL WHOS FEAR MONGERING NOW LOL

[Hereford]

this results in 4 to 6 million people losing their jobs in 2 months.

Then another million or two when those 4 to 6 stop their spending.

I'm a little nervous about 6 million desperate ppl on the streets, along with a few million more paupers who just lost their pension.

I mean, maybe you're ready to walk out your door every day and face one of these ten million desperate beggars/criminals.  but I'd prefer not to.

Weak logic.

So union workers will make the transition from latent criminals into real ones? I worked for a company a couple years ago that went bankrupt... How come the federal gvt didn't just keep forking $$$ to us too? Oh that's right... we were a non-union shop.

The situation can be fixed overnight by raining in the union costs.

1. Fire them all, and hire back the good ones at reasonable wages. No more of this seniority-tenured bullshit.
2. Make the unions themselves fund their rediculous health care and retirement funds.
3. STOP THE BAILOUTS. No company is ever going to be solvent if they can count on free $$$ from the government.

[240 is Back]

I'm not defending the unions and big 3, i'm telling you the societal ramifications of putting 10 million saps into poverty. 

the solution is a slow rampdown. 
help them with bills, cash out the lucky fackers who signed good pensions, get the auto indusrty to something greener without foreign oil dependence, and slowly cut the fat/let those ppl move back to school or new industries in the meantime.

[tonymctones]

I'm not defending the unions and big 3, i'm telling you the societal ramifications of putting 10 million saps into poverty. 

the solution is a slow rampdown. 
help them with bills, cash out the lucky fackers who signed good pensions, get the auto indusrty to something greener without foreign oil dependence, and slowly cut the fat/let those ppl move back to school or new industries in the meantime.

FEAR MONGERER