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U.S. prepares bankruptcy filing for Chrysler: report

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posted on Apr, 23 2009 @ 05:08 PM
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DETROIT (Reuters) – The Treasury is preparing a Chapter 11 bankruptcy filing for Chrysler LLC that could come as soon as next week, The New York Times reported on Thursday, citing people with direct knowledge of the matter.

news.yahoo.com...

The undoing of America continues with Chrysler paving the way for GM. Both corporations operate under similar principles and so there is no reason to believe that GM would go other way. Ford will surely benefit from having its competitors in the ropes for a while and is likely to stay out of trouble..

Chrysler asked the Treasury to do the filing. Anyone knows what was the last time this happened? It won't be so bad, coz the taxpayers will continue to provide financial assistance to Chrysler and the same will go for GM when it decides to follow Chrysler.

With all the tricks put into the motion, the beleaguered auto makers will pay off all their debts with tax payers money, but the taxpayers won't ever find out.

The Russians dealt with their problems using a radical way. Americans are not ready yet to pierce their bubble. They will wait till the bubble bursts by itself -- with a bang the size of a supernova,




posted on Apr, 23 2009 @ 05:13 PM
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Do you think Ford saw the light at the end of the tunnel and that is the reason they didn't take any bailout money?

Not taking the money is probably the smartest thing Ford has done in quite some time.



posted on Apr, 23 2009 @ 06:03 PM
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Originally posted by jam321
Do you think Ford saw the light at the end of the tunnel and that is the reason they didn't take any bailout money?

Not taking the money is probably the smartest thing Ford has done in quite some time.

Well, you don't want to invite the government in, if you really don't have to. Politics and auto making are quite different venues, and Ford didn't find the prospect of arguing with lay people that attractive.

[edit on 4/23/2009 by stander]



posted on Apr, 23 2009 @ 07:23 PM
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UPDATE: GOVERNMENT DISCLAIMER


Obama admin says still seeks Chrysler-Fiat deal

WASHINGTON (Reuters) – The Obama administration remains focused on bringing Chrysler and Fiat into a working partnership, a U.S. official said on Thursday, dismissing a news report that the U.S. car-maker faced imminent bankruptcy.


It appears that the prez doesn't like negative news regarding America staple corporations. That's exactly why Ford stayed away from Obama who acts like a king urging his sons to marry whoever he thinks is best for them.



posted on Apr, 23 2009 @ 08:33 PM
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People who don't know the legal terms:

LLC means Limited Liability Corporation.

It has NO shares. No stock of any kind is issued on the market, it is owned by one or more individuals.

This means that as the Federal Government is loaning money to this PRIVATE company, it is NOT being issued securities or equity in the company, as there is none to be had.

Where as banks we own a combination of common equity (common stock) and Senior Preferred Stock that generates a 10% income for a set amount of years. (Citi's payment was just deferred)

Chrysler is owned by Cerberus Capital Management who owns 80.1% of Daimlerchrysler (Chrysler LLC being a separate entity now)

Cerberus is founded and run by Steve Feinberg, who also incidentally owns a majority share in GMAC, the financing arm of GM that has also received large amounts of aid from the US Tax Payer.

And one last fun fact, Cerberus is a three headed dog in Greek Mythology that guards the gates to Hades.



posted on Apr, 23 2009 @ 09:05 PM
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There are IMHO several reasons why Ford is the only one of the US manufacturers that has a chance of surviving currently. Ford faces the same union issues and legacy healthcare and pension problems that the other two US companies do. They also are doing business in the same horrible economy that is crippling GM and Chrysler. Some, but not all of the reasons Ford has not sought the .gov teat yet follow.

Leadership: Ford's CEO Mullally has a proven track record. He turned Boeing around as CEO there. Ford's board of directors is not hesitant to replace an under performing CEO and has had several CEO's over the past decade I believe, whereas GM has suffered under lame arsed leaders for long periods. Chrysler's CEO ran Home Depot into the ground at the peak of one of the largest housing bubbles in history.

Ownership: Though Ford is a publicly traded company, the descendants of its founder still own a large part of the company. Their holding of the company also represent a large portion of their own personal wealth, so you can rest assured anything that might cause them to lose that like a government bailout will only come as a last resort.

Politics: Kinda mixed in with ownership here. Chrysler is owned by Cerebus Capital Management. The board and important members of Cerebus include a who's who of GOP heavyweights. I think the O administration would love to stick it to Cerebus on that and my bet is they will.

Timing: While Chrysler was a part of Daimler-Benz and GM was still larger than Toyota, Ford was the first company to stumble. They'd already eliminated their dividend, secured financing, raised some cash, and changed leadership before the economy really went south.

Finance: I may be wrong here but I don't think Ford got as heavy into finance as GM and even Chrysler did.

I don't by any means think going out and buying stock in Ford (or hell Toyota for that matter) is a good idea, but Ford still has a chance to survive independent of government interference. It's by no means certain that it will, but it at leas has a chance. I've heard it proposed that the reason GM accepted .gov money and all the strings attached is that there were major concerns that GM wouldn't be able to reorganize in BK and would have to be liquidated. So, I suppose it is even possible for Ford to go bankrupt and still survive.



posted on Apr, 24 2009 @ 01:42 AM
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reply to post by jefwane
 

I hope that no one around here is so naive thinking that GM or even Chrysler would go out of business. That is not permissible. The norm has been set.

It's really true that Ford cannot be pushed around easily by traders, but the signs that Ford wouldn't face severe financial problems was visible three years ago:


That's the gist of Chairman and CEO Bill Ford's statement to the annual meeting of Ford Motor Co. shareholders Thursday.

Saying that the company's long-term success depends on its global expansion, Ford emphasized that, despite its problems at home, all of the company's automotive operations outside North America are profitable. He went on to say that Ford Motor is aggressively targeting emerging markets, including Turkey, Russia, India and China, as avenues for future growth.


That was then, this is now:


Bailout-free Ford announced yesterday that investors agreed to swap nearly $10 billion dollars in its debt for cash and stock, reducing its total debt burden by 28 percent. The price: about 38 cents on the dollar. After the late-afternoon announcement, Ford stock rallied, gaining 16 percent.

Without a government backstop, Ford could argue credibly that its debt-holders would take a beating if the company were forced to file for bankruptcy. But that seems increasingly unlikely: Ford’s prospects have been looking up, as car-buying consumers flock to the only Detroit manufacturer that hasn’t taken taxpayer dollars. In any case, without the uncertainty of government financing, Ford’s debt-holders were able to put a firm value on its bonds and then choose whether or not to accept the automaker’s buyback terms.


Henry Ford wasn't exactly stupid guy. It all runs in the family.

Obama Motors?
Never.




posted on Apr, 24 2009 @ 01:46 AM
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This truly sucks. I myself am a Dodge man, and my Dad works for Chrysler. Hopefully they will be able to reorganize.



posted on Apr, 24 2009 @ 01:54 AM
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Originally posted by jam321
Do you think Ford saw the light at the end of the tunnel and that is the reason they didn't take any bailout money?

Not taking the money is probably the smartest thing Ford has done in quite some time.


No - they just realised they had to shut their American operations and go with the foreign ones......funny stuff. Least they know where their loyalty lies - in the bucks.....well actually the YUANS.



posted on Apr, 24 2009 @ 01:31 PM
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Originally posted by stander
With all the tricks put into the motion, the beleaguered auto makers will pay off all their debts with tax payers money, but the taxpayers won't ever find out.

I guess there are not too many tricks left:


WASHINGTON – Taxpayers invested another $2 billion in General Motors Corp. this week as the struggling auto giant continued efforts to restructure and avoid bankruptcy court.

news.yahoo.com...

I wonder what Rockpuck will say when he finds out that he just invested more of his savings into his beloved corporation.



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