Bloomberg, citing un-named sources, said that President Obama would announce Chrysler’s bankruptcy tomorrow, along with its alliance with Fiat. However, the President reportedly still hopes for an agreement with the remaining lenders.
According to the Washington Post, Chrysler’s creditor group has reached an accord with the Treasury Department which will, coupled with this week’s union deals, prevent bankruptcy. A group of 45 financial firms have agreed to drop their debt demand from $6.9 to $2 billion and around 10% of the company’s equity, shared with the U.S. [...]
The current Chrysler first-lien lenders group’s offer for to the Treasury is dropping the debt level to $3.75 billion, and 40% of Chrysler’s equity. The lenders have dropped $750 million in debt, their demand for $1 billion of their equity to be preferred equity, and their demand that Fiat invest $1 billion. This is still [...]
In their rush to send out key details of Obama’s auto plan, many journalists ignored important information. This is the full text; other documents are available from the White House.
One of the challenges we have confronted from the beginning of this administration is what to do about the state of our struggling auto industry. [...]
Dear Employees,
Today’s announcement by the Administration represents an important step forward on our path to viability. The Administration, U.S. Treasury and the President’s Auto Task Force have recognized Chrysler’s viability as an important part of the U.S. auto industry and overall economy, and have provided a critical vote of confidence in our alliance with Fiat [...]
In a surprise move possibly demanded by government negotiators, GM CEO Rick Wagoner, who has been in office for eight years, will be stepping down, according to a Detroit News article.
President Carter set, as one requirement of the original Chrysler loans, a demand that Chrysler’s CEO step down; he did so and was famously [...]
Cerberus wants to protect its investors and intends to stay within its internal rules limiting how much capital it can commit to an individual company. That’s the reason the private-equity firm is asking for more federal loans instead of plowing further cash into Chrysler. These comments were included in a letter from Mark Neporent, Cerberus’ [...]
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