http://finance.yahoo.com/news/Report-Treasury-makes-offer-apf-15006179.html
$this->bbcode_second_pass_quote('', 'L')OS ANGELES (AP) -- The Treasury Department lobbed back a new offer to Chrysler LLC's lenders, proposing that banks and hedge funds which hold $6.9 billion in debt forgive $5.4 billion in exchange for a 5 percent stake in a Chrysler-Fiat alliance, media reports said late Wednesday.
The new offer represents payment of 22 percent of the debt lenders are owed, according to a report by The Wall Street Journal. That would be up from a previously rejected government offer of 15 percent payment and no stock.
However, the new proposal is still far less than the 40 percent stake and $4.5 billion payment -- representing 65 percent of what they are owed -- sought by the automaker's lenders.
Chrysler is living on $4 billion in federal loans and could get another $500 million to survive through April, but without massive restructuring and a Fiat deal, Chrysler won't get any more aid, government officials have said.
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Crysler being sold by the treasury... and the reason why...
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Crysler being sold by the treasury... and the reason why...
by the48thronin » Thu 23 Apr 2009, 00:31:39
So the government is now deciding on how and to who Chrysler will be sold... is this the reason why? ( from the last two paragraphs)
$this->bbcode_second_pass_quote('', 'I')ncluding the secured debt and government loans, Chrysler owes about $23.5 billion, including $10.6 billion to a United Auto Workers trust fund that will take over retiree health care costs starting next year. It also owes $1 billion each to its owners, Cerberus Capital Management LP and Daimler AG.
The company is negotiating with the UAW to take equity for part of the trust fund obligation, as well as other concessions. But bankruptcy experts have said secured debtholders won't likely settle for pennies on the dollar because their loans are secured by Chrysler's physical assets and because they likely purchased credit default insurance that would repay them if Chrysler defaults.
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Courtesy and Courage Sincerity and Self-control Honor and Loyalty a Code to Live By!
What do the miners do when the canary dies? EVACUATE THE MINE not argue about the color of it's feathers or buy a parrot instead.
Where is my pitchfork and torch? I need them for a visit to the castle!
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Re: Crysler being sold by the treasury... and the reason why...
by PWALPOCO » Thu 23 Apr 2009, 05:47:39
And the Credit Default insurance is with .... AIG perhaps (?) ... whose track record at the moment I believe is meant to be pretty good on paying out ... its backed by the Tax Payer after all !
So are the creditors going to take cents on the dollar or hold out for the whole lot .. hmmmmm
So are the creditors going to take cents on the dollar or hold out for the whole lot .. hmmmmm
All that it takes for evil to triumph is for good men to do nothing.
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Re: Crysler being sold by the treasury... and the reason why...
by Plantagenet » Thu 23 Apr 2009, 11:39:58
$this->bbcode_second_pass_quote('PWALPOCO', 'A')nd the Credit Default insurance is with .... AIG perhaps (?) ... whose track record at the moment I believe is meant to be pretty good on paying out ... its backed by the Tax Payer after all !
So are the creditors going to take cents on the dollar or hold out for the whole lot .. hmmmmm
So are the creditors going to take cents on the dollar or hold out for the whole lot .. hmmmmm
The creditors are ALSO backed by the tax payer....its mainly commercial banks. And, since they were all pushed into taking TARP money, the government can tell them what to do as well. But....when the government tells the banks to take huge losses on their auto company loans, the banks will then require more TARP loans.
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Re: Crysler being sold by the treasury... and the reason why...
by OutOfGas » Thu 23 Apr 2009, 12:14:44
Better pay off debt.
Buy canned and dry food.
Buy plenty of ammo.
Looks like SHTF this summer.
Buy canned and dry food.
Buy plenty of ammo.
Looks like SHTF this summer.
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Re: Crysler being sold by the treasury... and the reason why...
by heroineworshipper » Thu 23 Apr 2009, 13:14:04
Now the personal non-AP news gathered from going to Chrystler dealers. Chrystler hasn't done 1 damn thing since bailout #2. They're still producing the same gas guzzling junk they did 30 years ago. No-one's buying it.
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Re: Crysler being sold by the treasury... and the reason why...
by Buggy » Fri 24 Apr 2009, 12:10:34
$this->bbcode_second_pass_quote('OutOfGas', 'B')etter pay off debt.
Buy canned and dry food.
Buy plenty of ammo.
Looks like SHTF this summer.
Buy canned and dry food.
Buy plenty of ammo.
Looks like SHTF this summer.
But.. but... but...
Ford didn't even lose 2 billion dollars this quarter! They say they will be profitable by 2011! You mean we're not saved, again? I was thinking all the unemployed Chrysler folks would run out and buy new Fords too!
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