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Chrysler Gets $8 Billion For 60-Day Bankruptcy
by
Edward Niedermeyer
(IC: employee)
Published: April 30th, 2009
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Or, as President Obama puts it, “a new lease on life.” Chrysler (“a company with a particular claim on our American identity”) will file for Chapter 11 bankruptcy in Manhattan court today, as Obama has promised $3.5 billion in federal aid over the next 30 days in hopes of hitching the troubled automaker to Fiat. The case will be handled by judge Arthur Gonzalez, a veteran of the Enron and WorldCom bankruptcies. When the deal is concluded and Chrysler emerges from bankruptcy, the federal government will inject another $4.7 billion. That more than doubles the current taxpayer investment in Chrysler, which had reached $4 billion (not counting ChryFi). See President Obama’s full statement at C-SPAN.
Edward Niedermeyer
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Published April 30th, 2009 1:18 PM
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"where posters dump on the people trying to solve the problem and not make it worse" I suspect this is because these posters see nothing positive in any of these developments, just an endless waste of taxpayer's money. They weren't competing for decades, now they're taking on more debt and will be managed by the government and a union. Meanwhile, the same companies that were kicking their ass previously are going to be as strong as ever. Personally, I view the auto industry cash dump as just one more indication of this administration's contempt for capitalism and the free market.
Can a nation be considerded a superpower without its own auto industry. If you bow to the Italians then you indeed have no pride. I feel sorry for the next generation that have to live in this declining envirnoment. I think everyone knows this merger will be an absolute failure. Maybe it will be for the better.