Chrysler – Is It Or Isn’t It Bankrupt?
Chrysler is bankrupt – or is it?
The American automaker announced today that it will file for Chapter 11 protection from creditors, but the administration of President Barack Obama (which is “overseeing” the process) said that it would be a “quick” and “surgical” bankruptcy.
Also, none of the union contracts are in jeopardy, and the government is continuing to provide financing for individual car dealers.
Remember, Big Brother is Driving Now.
Amazingly, anybody with open eyes knew this was coming.
In fact, former Treasury Secretary Henry Paulson referred to the billions of dollars in bailout money that Chrysler got last year as a cushion for eventual bankruptcy – a comment which begs a lot more questions than it answers.
Seriously, how many of the 5 million Americans who have lost their jobs in this recession ever got that kind of a “cushion?”
What’s amazing is that Obama’s “automotive task force” actually allowed this step to be taken – even though it appears clear that more federal aid will be heading Chrysler’s way on the other side of “bankruptcy.”
Chapter 11 can’t become Chapter 7 (liquidation), after all.
Either way, thoug, Obama had wanted to avoid the public stigma of “bankruptcy” – or any word that in any way, shape or form reminds people of capitalism.
Comments
By Ernest Nnagbo on April 30th, 2009 at 7:09 pm
very uninteresting there couldnt be another IOCOCA that will intelligently bail chrysla into profitability again, what bothers me so much is the number of employed that will automatically become unemployed no including suppliers and dealers employers and employees alike good luck with the moder day capitalist propelled socialism called bail out
By RON PAUL on April 30th, 2009 at 8:51 pm
I think it is ironic and funny that the UAW will own 55%…what a position to be in…do you watch the profits go down or do you start acting like an owner and being conservative on labor?…no matter..selling fiats will jsut run them right out of business again.Who drives that junk.LOL
By James the Foot Soldier on April 30th, 2009 at 9:16 pm
Time for me to get my cipherin’ machine out again….
UAW will own 55% of Chrysler
Chrysler’s net worth is Negative Cajillion Dollars (which is why they bankrupt)
cipher…cipher….whirrrr….cipher….and the result is….PRESTO:
The UAW is upside down on their stake in Chrysler.
This irony is sooo delicious.
By rick on May 1st, 2009 at 9:36 am
Don’t be to happy to soon. Ol’Floppy has already volunteered the taxpayer to “stand” behind any warranty work. This agreement with Fiat/US Government has enabled Chrysler to access more taxpayer money and in the end….we’ll end up assuming the legacy costs since Chrysler will not survive even after bankrupcy. The government will buy a large number of their vehicles, but what about the US consumer? Without the American consumer, its only a matter of time….
By Ernest Nnagbo on May 11th, 2009 at 11:38 am
bye chrysler!!! till we meet to part no more