Chrysler: Making Bankruptcy Sound Good

You know the President has a reassuring way about him, when he’s able to make Chrysler’s bankruptcy sound so darn good. Why, watching his press conference, for a while one might not have even realized Chrysler was going to file for bankruptcy, as it took something like 7 minutes before the “B” word was even uttered by the President.

I mean, how great does this sound?:

After consulting with my auto task force, industry experts, and financial advisors, I decided to give Chrysler and Fiat 30 days to reach an agreement. The standard I set was high: I challenged them to design a plan that would protect American jobs, American taxpayers, and the future of a great American car company.

But over the past month, seemingly insurmountable obstacles have been overcome. And Chrysler’s most important stakeholders, from the United Auto Workers to Chrysler’s largest lenders, from its own — from its former owners to its suppliers, have agreed to make major sacrifices.

So, today, I am pleased to announce that Chrysler and Fiat have formed a partnership that has a strong chance of success. It’s a partnership that will save more than 30,000 jobs at Chrysler and tens of thousands of jobs at suppliers, dealers, and other businesses that rely on this company. It’s a partnership that the federal government will support by making additional loans that are consistent with what I outlined last month.

As part of their agreement, every dime of new taxpayer money will be repaid before Fiat can take a majority ownership stake in Chrysler. In addition, considering Chrysler’s extensive operation in Canada, the government of Canada is also committing resources to ensure that Chrysler has a chance to succeed, and we’re working closely with them.

It’s a partnership that will give Chrysler a chance not only to survive, but to thrive in a global auto industry. Fiat has demonstrated that it can build the clean, fuel-efficient cars that are the future of the industry. And as part of this agreement, Fiat has already agreed to transfer billions of dollars in cutting-edge technology to Chrysler to help them do the same.

Fiat’s also committed to working with Chrysler to build new fuel- efficient cars and engines right here in America.

Now, this partnership was only possible because of unprecedented sacrifices on the part of Chrysler’s stakeholders, who are willing to give something up so that this company and all the men and women whose livelihoods depend on it might see a better day…

Kind of makes everyone wish they could go bankrupt, too!

Now, it turns out that the bankruptcy will put some Chrysler workers out of work–at least temporarily–as the plants shut down during the reorganization. As the workers put it, the “roller coaster” for them isn’t quite over. But I’m sure many of these Chrysler employees are just happy they haven’t (yet) been asked to step off the ride.

Comments

[WMBANZAI7:]

LITTLE BAILOUT GTO
(Ronnie and the Daytonas, Little GTO)
WilliamBanzai7

Sing along link: www.youtube.com/watch?...

Little GTO, you’re really lookin mighty fine.
Three billion deuces, a four speed haircut–its Section 363 Bankruptcy time
Listen to her tachin’ up now, listen to her why-ee-eye-ine
C’mon and turn it on, wind it up, blow them bondholders out GTO

You oughta see her on a cash burn course for a quarter mile
This little bailout Pon-Pon has got plenty of high finance style
She beats the union gassers and them greedy hedge hoggers, really drives ‘em why-ee-eye-ild
C’mon and turn it on, wind it up, blow them bondholders out GTO

President Obama sings:
Gonna save some TARP money (turnin’ it on, blowin’ it out) and buy a GTO (turnin’ it on, blowin’ it out)
Get a bailout helmet, an Italian roll bar (turnin’ it on, blowin’ it out) and I’ll be ready to go (turnin’ it on, blowin’ it out)
Take it out to Pomona (turnin’ it on, blowin’ it out) and let ‘em know (turnin’ it on, blowin’ it out), yeah, yeah
That expedited Chapter 11’s the coolest thing around
Greedy little bondholders, gonna shut you down
When we turn it on, wind it up, blow them bonds out GTO

May 01 08:32 AM

[speculari:]

VROOM! VROOM!




fizzle!

May 01 09:38 AM

[Baron95:]

Assuming the presiding judge is not a pushover, I think the president is about to get schooled by the Bankruptcy process - he just lost orchestration control of the Chrysler deal.

With at least a good number of secure creditors objecting to the pre-filing plan/deal, they can tie this up in litigation and objections, to prevent the unsecured creditors (namely UAW) from getting a penny before they, the top-class of secured creditors get all they are owed.

Lets see if the rule of law will prevail in an Obama administrator and if the hedge funds have the balls to press their claims to the mat.

May 03 05:16 PM

[Baron95:]

And the schooling of Barack Obama in the Chrysler Bankruptcy begins in earnest today in Bankruptcy court.

Read the shaded areas of this article...
< a href="hotair.com/archives/20.../">hotair.com/archives/20.../

It outlines why Obama's proposed taking of the collateral assets from the secured (non-tarp) creditors to gift them to Fiat and the UAW violates the 5th Amendment of the US constitution, and cites relevant case law. This was tried during the great depression by FDR and was deemed unconstitutional and illegal by the US Supreme Court, then.

Hopefully this Judge will grant the motion of the secured creditors and STOP the gifting of these assets to junior unsecured creditors and third parties like Fiat.

May 04 06:39 PM