Jump to content
Sign in to follow this  

AutoBlog: Officially, Official: Bankruptcy judge approves sale of Chrysler assets

Recommended Posts

Filed under: Government/Legal, Chrysler, LLC., Earnings/Financials


Late Sunday night, U.S. bankruptcy Judge Arthur Gonzalez approved the sale of Chrysler's remaining good assets to a group that includes the UAW VEBA health care trust, Fiat, and the U.S. and Canadian governments. The union will get a 68% stake, Fiat gets 20% and the governments split the rest. Gonzalez over-ruled virtually all objections to the deal on the grounds that the best chance of preserving any value in the assets was to move ahead with the sale. The only other viable alternative was liquidation, which would likely only bring a small fraction of the potential value in keeping the company alive.

Gonzalez cited the public interest as one of the reasons to move ahead with the sale. Because the billions of dollars in loans from the two governments, keeping the company alive it was decided that this course of action was the best opportunity for some repayment. Senior lenders will receive $2 billion, or about .29 cents on the dollar of the debt currently owed by Chrysler. Some 90 percent of the company's senior lenders were reportedly in support of the deal.

The "new" Chrysler will henceforth be known as Chrysler Group LLC.

[source: Reuters]

Officially, Official: Bankruptcy judge approves sale of Chrysler assets originally appeared on Autoblog on Mon, 01 Jun 2009 08:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments


autoblog?i=IKi1Kwx2wMs:H2b3AOGXMqs:wF9xT autoblog?i=IKi1Kwx2wMs:H2b3AOGXMqs:V_sGL

View the full article

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Who's Online   1 Member, 0 Anonymous, 138 Guests (See full list)

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets


  • Create New...