I am in Philadelphia today, speaking at my friend David Kotok’s The Financial System, Banks & Economy: After the Storm…Where Are We Now? conference, and I may just have to throw away my notes and wing it to speak about the Chrysler bankruptcy . . .
“President Barack Obama aims to announce [Thrusday] 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 resolving outstanding issues, and the plan isn’t finished, said one of the people, who declined to be named because discussions are private.
As part of negotiations, the U.S. Treasury raised its offer to Chrysler’s lenders to $2.25 billion in cash to forgive $6.9 billion in secured debt, two other people familiar with the matter said. The previous offer had been for $2 billion in cash.”
In the latest proposal, the UAW would (eventually) own 55% of the stock in a restructured Chrysler under a deal reached by the two. Fascinating.
Chrysler Chapter 11 Is Imminent
NEIL KING JR. and JEFFREY MCCRACKEN
WSJ, APRIL 30, 2009
Obama Said to Plan for Chrysler Bankruptcy, Alliance
Mike Ramsey and Christopher Scinta
Bloomberg, April 29 2009