DETROIT (AP) -- Talks between Chrysler LLC's lenders and the Treasury Department to reduce the automaker's $6.9 billion in secured debt and keep it out of bankruptcy protection have disintegrated, a person familiar with the talks said early Thursday.
The company's fate was in the hands of about 40 hedge funds that hold about 30 percent of its debt. Although four banks holding 70 percent of the debt had agreed to erase it for $2 billion, the hedge funds were holding out for a better deal.
After allowing talks to continue late into the night Wednesday, Treasury finally ended negotiations after the hedge funds were unable to come to an agreement, the person said, asking not to be identified because the talks were private.
The deal's failure means Chrysler will seek bankruptcy protection unless something can be worked out before the government's 11:59 p.m. EDT deadline.
The company's fate was in the hands of about 40 hedge funds that hold about 30 percent of its debt. Although four banks holding 70 percent of the debt had agreed to erase it for $2 billion, the hedge funds were holding out for a better deal.
After allowing talks to continue late into the night Wednesday, Treasury finally ended negotiations after the hedge funds were unable to come to an agreement, the person said, asking not to be identified because the talks were private.
The deal's failure means Chrysler will seek bankruptcy protection unless something can be worked out before the government's 11:59 p.m. EDT deadline.
(From The Washinton Times)
9 comments:
Chryler hasn't been worth a hoot since Ricardo Montalban stopped doing their commercials: "ahhhhhh, Rich Corinthian Leather" lol
any guess as to who will foot the bill for all of the legacy benefits for retired workers?
And I want to know how much the company's officers will be bailing out with.
They have some the most nice looking autos too. I have a pacifica and I really like it.
Anybody else get the feeling that the government is FORCING them to choose from the governments options only? It seems that Obama et al WANT them to file bankrupt or merge with a foreign company? I have heard of no other options being explored. All you hear is gov't takeover or Fiat Fiat Fiat. Im sorry, if they merge with Fiat, i weep for the cars that will come out of there.
This isn't the first time Crysler did chapter 11 and restructured there own debt, did it in late 70's. They bounced back, I'd rather see all these companies do chapter 11 and restructure themselves or go out of business. I don't believe any of them should be government subsidized.
the car and trucks they make are junk anyway...ever seen a dodge caravan!
the government needs to keep their nose out of the auto makers business.
let capitalism work and let them go bankrupt, reorganize and get rid of the unions or fail.
We will then have much more affordable vehicles. No person deserves wages and benefits that add up to $75.00 per hour for putting on a tire or lug nuts.
The POTUS said last night, "if Japan can do it, we can too"
well mr hussein, the only difference is the union wages and benefits.
Sorry this is off topic. The banks are doing so poorly because people can't pay their mortgages. I thought that everyone when they got a home had to pay for PMI, doesnt that cover if the person defaults on the loan? I haven't heard any of this covered anyone maybe someone here can explain it to me.
Thanks
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