Chrysler Bankruptcy Near, UAW Protected

[jhs914]

[New York Times]: The Treasury Department is preparing a Chapter 11 bankruptcy filing for Chrysler that could come as soon as next week, people with direct knowledge of the action said Thursday.

The Treasury has an agreement in principle with the United Automobile Workers union, whose members’ pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing....

Once Chrysler emerges from bankruptcy protection, it would largely be owned by Fiat, the U.A.W., the Treasury and its lenders


http://finance.yahoo.com/loans/artic...&asset=&ccode=

[SnowgodCCR]

I think that the UAW should get diddly squat, seeing as it was them that killed Chrysler through their inflexibility. I hope that the new chrysler refuses to hire anyone that played a role in their demise.

[EmagdniM]

Wonder how this will effect our warranties?

[SnowgodCCR]

Wonder how this will effect our warranties?

you can probably bet your ass that it won't be protected like the UAW's pensions.

[Darthvader]

This report is highly inaccurate.

[SMK HEMI]

I just read today that the lenders are still in negotiations with US treasury. It's not over yet......

[Mr. iNCREDIBLE]

This report is highly inaccurate.

not hardly, slightly MAYBE, but not highly..

http://www.nytimes.com/2009/04/24/bu...r.html?_r=1&hp

[richd]

I think that the UAW should get diddly squat, seeing as it was them that killed Chrysler through their inflexibility. I hope that the new chrysler refuses to hire anyone that played a role in their demise.

Must be you didnt read the report where Chrysler Financial didnt get Govt.money because the top 25 big shots refused to sign a waiver to agree to the Govt. terms on pay.These were not union members,but greedy white collar all for themselves people.The union members dont make the decisions,so how can you blame them?They made alot of consessions already.

[MattRobertson]

Must be you didnt read the report where Chrysler Financial didnt get Govt.money because the top 25 big shots refused to sign a waiver to agree to the Govt. terms on pay.These were not union members,but greedy white collar all for themselves people.The union members dont make the decisions,so how can you blame them?They made alot of consessions already.

That report also has been flagged as inaccurate, is false, has been denied

[SLVRMAG]

Didn't I hear our President Obama say warranties would be protected by the Feds????

[rwalshphoto]

Didn't I hear our President Obama say warranties would be protected by the Feds????

yeah he would say something like that. who the f*ck is going to perform the work? all the union workers that are layed off? I smell government sponsored program.. whopppeeee.

[richd]

That report also has been flagged as inaccurate, is false, has been denied

This is a true story.If you google it ,you'll see it was in the Washington Post April 21,2009.The Govt. offered 750 million dollars,and they refused because they wouldnt accept the terms.

[Mr. iNCREDIBLE]

That report also has been flagged as inaccurate, is false, has been denied

where is that flag please.. I would like to read up on this a bit more.

[rwalshphoto]

Taken from Obama Administration New Path to Viability for GM and Chrysler
http://www.docstoc.com/docs/5177603/...-GM-_-Chrysler


Key Findings, Cont.

A Commitment to Consumer Warrantees:
The Administration will stand behind new cars purchased from GM or Chrysler during this period through an innovative warrantee commitment program.

Appointment of a Director of Auto Recovery:
The Administration also announced that Edward Montgomery, a top labor economist and former Deputy Secretary of Labor, will serve as Director of Recovery for Auto Workers and Communities. Dr. Montgomery will work to leverage all resources of government to support the workers, communities and regions that rely on the American auto industry.

Requirements for Additional Government Support:
Fiat, Chrysler and all of Chrysler’s stakeholders must clearly understand that for this deal to succeed, significant hurdles must be cleared:
•First, Chrysler must restructure its balance sheet so that it has a sustainable debt burden. This at a minimum will require extinguishing the vast majority of Chrysler’s outstanding secured debt and all of its unsecured debt and equity, other than trade creditors providing normal trade terms.
•Second, Chrysler, Fiat and the UAW need to reach an agreement that entails greater concessions than those outlined in the existing loan agreements.
•Third, Chrysler and Fiat need to demonstrate with a greater degree of detail an operating plan that is truly viable, that can generate meaningful positive cash flow in a normal business environment and that can demonstrate credibly that taxpayer loans will be repaid on a timely basis.
•Fourth, the final plan agreed by Chrysler, Fiat and their stakeholders must not, under appropriately conservative operating assumptions, require than $6 billion of post-restructuring loans from the U.S Treasury.
•Fifth, Chrysler must have a viable, adequately capitalized mechanism to finance the purchase of Chrysler cars by its dealers and customers.
•Finally, Chrysler needs a credible plan to execute this restructuring. Given the magnitude of the concessions needed, the most effective way for Chrysler to emerge from this restructuring with a fresh start may be by using an expedited bankruptcy process as a tool to extinguish liabilities.

[chargerondavins]

hmm seems tot he the union was a big part of this company's demise.

let's pay a worker 3x what they are worth.

bad choice.