Chrysler on Pace for Swift Finish to Restructuring-Judge to Rule On Asset Sale To Fiat Group

[Pirate Smile]

Source: Washington Post

By Tomoeh Murakami Tse and Peter Whoriskey
Washington Post Staff Writers
Wednesday, May 27, 2009

NEW YORK, May 26 -- When Chrysler filed for bankruptcy April 30, restructuring veterans scoffed at the idea that such a big company could move through the process quickly, and industry veterans warned that the U.S. manufacturing base would be deeply disrupted.
But today, federal bankruptcy Judge Arthur Gonzalez is scheduled to consider a motion to sell most of Chrysler's assets to a new entity led by Italy's Fiat. The judge's approval would set up the automaker for one of the biggest and fastest bankruptcy proceedings of its kind.

"Given a company this size and this complicated an operation, a sale of substantially all of business in this short time frame is probably unprecedented," said Howard Seife, who heads the bankruptcy practice at Chadbourne & Parke.
The tactics are likely to be repeated by General Motors, which Tuesday reached agreement on key concessions from the UAW and failed to get a deal from its bondholders that would have kept it out of bankruptcy court. GM could file by Monday, the deadline set by the Obama administration for the automaker to restructure.

Chrysler has suffered few of the problems some predicted before it filed for bankruptcy. The process has resulted in only temporary setbacks to the nationwide network of suppliers, and sales have not plunged.
Experts said that's probably because many people view the bankruptcy as a temporary stop and because the federal government guaranteed car warranties. Preliminary reports from J.D. Power and Associates suggest that May sales were roughly on par with those of April.

Opposition from creditors that surfaced during the proceedings quickly evaporated, as Gonzalez wasted little time ruling against their claims. On Tuesday, a small group of Chrysler's senior secured lenders lost its battle to halt the sale, removing the last major hurdle to today's hearing.
Some restructuring experts said they had not fully appreciated the influence the federal government would wield over the process.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052603179.html?hpid%3Dtopnews&sub=AR

[proud patriot]

1. good

:) I hope it's goes smoothly.

[Pirate Smile]

2. Me too. "They said" it couldn't be done - which makes it even more rewarding when they do it.

:)

edit to add - now I have Obama saying "They saaaiiid" running through my head like a song that refuses to budge.

"They sassiiiid this day would never come ... they saaiiiid our sights were set to high".

Well, it is a nice ear worm. I think it is the Iowa caucus night speech. :)


Hmmm. I think this may be a sign regarding how much time I spend watching news/speeches/etc. heh

[liberal N proud]

3. I am anxious to see what the company looks like when it is finished

How will it change the company and the products they produce. If they are a better product and better design, more reliable then they should survive.

[tomreedtoon]

4. And GM won't be able to do what Anti-Christler did.

How are the mighty fallen. Be not proud of your magnificent benefits, oh UAW workers. Be not proud of your rusty, rattletrap SUV's, executives. For you called upon the people to fund your madness several times too many, and they have nothing left. Your Lord God Mammon has abandoned you.