Chrysler Deal with Banks Could Save Company From Bankruptcy

Chrysler-300

News is breaking fast today that Chrysler’s creditors have secured a deal with the Treasury Department that could save the company from bankruptcy. Early reports on the deal say that $6.9 billion in debt will be forgiven for $2 billion in cash, presumably coming from the U.S. government.

Obviously, details are still coming in, but this is the final piece to the puzzle for Chrysler to meet the government’s May 1 deadline to reorganize. Chrysler has already received concessions from auto unions and has a deal with Fiat ready to go once this debt is off the books.

We’ll bring you updates as soon as we have them.

Deal Is Set on Chrysler Debt That May Avert Bankruptcy (New York Times)

By David Thomas | April 28, 2009 | Comments (1)

Comments 

Maxwell

I wonder if there will be a backlash against UAW Motors, formerly Chrysler - bought for the UAW by taxpayer dollars that will probably be never repaid.

Then again, General Motors seems to want to change its name to Government Motors, jointly controlled by the US government and the UAW - again bought with taxpayer dollars that will never be repaid. If the government runs GM as efficiently as it runs the rest of the government, my guess is that it will cost Government Motors $40,000 to build each Cobalt and $90,000 to build each pickup.

I bought a new Ford a year ago (just got it's annual DMV inspection today). I'm feeling better about that decision today.

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