Fiat is back in town and is negotiating with Chrysler and the Gov. The deal is for 20% of Chrysler. Some of the big creditors are balking at forgiving some loans and that may end up putting Chrysler into bankruptcy. They worked late into the night, across town from me. What I found out last night was that Fiat is in debt by 11 billion themselves and that the Italian government has been helping fund them for many years.
This sounds more like a partnership of necessity for both parties.
Fiat and Chrysler
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Kevin1
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Re: Fiat and Chrysler
Chrysler announced they will begoing into chapter 11 bankruptcy. The banks agreed to their debt relief plan. Apparently some hedge funds which held shares of Chrysler refused to budge. Can't really blame the hedge fund managers, they will profit nicely when chrysler stock tanks (anything for a buck! Right?). So here they go, trying to force the issue.
On the positive side, talks with Fiat are expected to be successful.
Complete article from BBC news: http://news.bbc.co.uk/2/hi/business/8027109.stm
Some points from the article:
"Chrysler is to enter bankruptcy protection after failing to persuade its main lenders to write off its debts, a White House official has said."
"Reports have said that while Chrysler's banks accepted this proposal, it was rejected by hedge funds that also hold a sizeable proportion of its debt."
"While Chrysler appears to have failed to reach agreement with its lenders, it has gained an agreement with the union, and talks with Fiat are said to be near a successful conclusion."
On the positive side, talks with Fiat are expected to be successful.
Complete article from BBC news: http://news.bbc.co.uk/2/hi/business/8027109.stm
Some points from the article:
"Chrysler is to enter bankruptcy protection after failing to persuade its main lenders to write off its debts, a White House official has said."
"Reports have said that while Chrysler's banks accepted this proposal, it was rejected by hedge funds that also hold a sizeable proportion of its debt."
"While Chrysler appears to have failed to reach agreement with its lenders, it has gained an agreement with the union, and talks with Fiat are said to be near a successful conclusion."