Posted on 04/30/2009 6:52:34 AM PDT by CedarDave
WASHINGTON (Reuters) - Chrysler LLC will proceed with Chapter 11 bankruptcy protection now that talks with debtholders have broken down, an administration official said on Thursday.
(Excerpt) Read more at reuters.com ...
http://www.reuters.com/article/ousiv/idUSTRE53T3ZL20090430
GM will follow.
Does this mean the union contracts are null and void?
Good. I’m glad the bondholders weren’t suckered into a deal with the devil involving the UAW and Obama.
That’s for a judge to decide.
Depending on how they file and who the judge is, the union could come out of it quite well.
This would be good I think. I hope Chrysler isn’t just saying this to get more leverage w/the unions and/or BO
O’Bambam does not want this....
....that is why I like this.
Let Chrysler move their plants now to right to work states and re-group there.....let the union thugs work in Mickey D’s.
I think Chrysler is going to be seen as the “guinea pig” test case for General Motors.
Bloomberg reports that the company has reached cost-saving labor deals with the UAW in the US and Canada. The Canadian union ratified its contract over the weekend; UAW members approved the deal yesterday.
Do the taxpayers get their billions back?
Should have happened months ago with both GM and Chrysler. GM bondholders have every bit as much right to be furious as Chrysler’s.
I have no idea why 0 thought the bondholders would simply roll over for this highway robbery.
Is this a good thing?
I have no idea whether those union agreements were contingent on the financing plan that fell through or will remain in effect through the bankruptcy filing.
Nothing like jumping the old gun!!!
The GM bondholders are fighting back. They want a 58% take rather than 225 shares of stock for every $1,000 in bonds. Unfortunately their proposal gives a little more to the UAW.
I still hope they keep fighting.
“Good. I’m glad the bondholders weren’t suckered into a deal with the devil involving the UAW and Obama.”
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I agree. The bondholders and lenders are garruanteed to lose money on the Hussien deal. The UAW running Chrysler? I would give them 2 years (at best) and it will die. WHY would any lender/bondholder/invest want to invest a dime on this knowing that they will loose it all within 2 years??
The backroom deal has already been cut. The union is going to wind up owning 55% of the company. I'm guessing their contract with themselves will be whatever they say it is.
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