Chrysler to File for Bankruptcy
April 30th, 2009Via: Washington Post:
Chrysler, one of the three pillars of the American auto industry, will file for bankruptcy today after last-minute negotiations between the government and the automaker’s creditors broke down last night, an Obama administration official said.
U.S. officials had offered Chrysler’s secured lenders $2.25 billion in cash if they would agree to writedown the $6.9 in secured debt that the company owed. But a small group of hedge funds refused the 11th-hour deal, forcing an imminent bankruptcy.
An administration official this morning expressed disappointment, saying the holdouts had failed to “do the right thing,” but that “their failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders, nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward.”
President Obama is scheduled to address the issue at noon today at the White House.
Chrysler but not GM?
Grr.
Chrysler has a good thing going re their electric cars re creating jobs in the US in a partnership with MIT.
Bummer. GM – grr. They sent the development of their electric car battery off to China.
Pissants.