U.S. prepares bankruptcy filing for Chrysler

[ThePhotographer]

U.S. prepares bankruptcy filing for Chrysler: report

Chrysler to lose board control

DETROIT – The Treasury is preparing a Chapter 11 bankruptcy filing for Chrysler LLC that could come as soon as next week, The New York Times reported on Thursday, citing people with direct knowledge of the matter.

The Treasury has an agreement in principle with the United Auto Workers union to protect pensions and retiree health care benefits as a condition of the bankruptcy filing, the paper said.

Italy's Fiat would finalize its alliance with Chrysler while the U.S. automaker is under bankruptcy protection, the paper reported.

Chrysler has until April 30 to complete its partnership with Fiat and win concessions from its first-lien lenders and the UAW, or face a cut-off of government funding and a potential bankruptcy.

The Times said U.S. and Canadian governments were prepared to provide the financing that Chrysler needed to operate while under bankruptcy protection.

Chrysler was not immediately available for comment.

[scott4751]

Not to worry for those of you here in the U.S., The Big O has promised the government will back our car warranties :bowdown:

Government control is going to be disastrous!!! Hey at least the government can work THEMSELVES a sweet deal for new mail delivery vehicles.

Lord Help Us!!! :fan:

[W_A_Watson_II]

Word is it's the story is a way to pressure the company. What ever happened to free enterprise, and our free country?

I am a Christian and believe in the one true God.

I believe marriage is between a Man and a Woman.

I believe in life, and oppose abortion.

I support the 2nd Amendment.

I believe in border security and legal immigration.

I support the Men and Women who defend the people of this nation.

I am a Conservative who believes in the Republic, not socialism.

Am I a threat to Homeland Security, or Am I Homeland Security?

I AM Homeland Security

[JohnnyG]

More likely to pressure the union. Word today is that a deal with the union in Canada, at least, is imminent.

[wyoram]

Another rumor I heard was that Chrysler is trying to sell off the Viper. And right now there sales are up 74%! That makes sense...................not. Yeah lets sell off part of our company that is making a profit right now

[JourneyMan71]

http://www.detnews.com/article/20090428/AU...vert+bankruptcy

[JourneyMan71]

Maybe, Dodge and rest will be around for a while longer.

[DogSportz]

Chrysler set up a website to answer questions about the bankruptcy filing:

http://www.chryslerrestructuring.com/

[W_A_Watson_II]

http://www.detnews.com/article/20090501/AU...ng+but+ordinary

Chrysler's plan to emerge includes new management, a new board, an Italian partner, a revamped product lineup, less plant capacity, fewer workers and dealers and, potentially, a NEW NAME.

Perhaps the New Name is Government Motors Deux, or GM-2?

The new company will be run by a nine-person board with six independent members appointed by the government and three appointed by Fiat, including an employee.

Government Run!

The governments of the U.S. and Canada comprise a collective 10 percent stake and an independent health fund trust to be run by the United Auto Workers will hold a 55 percent stake but without equivalent voting rights.

So even though the UAW owns 55 percent their voting rights are owned by the Government?

All this almost wants me to re-name the company so as to not pollute the history of the name.