Comments on: Chrysler on C11: “We are categorically denying this”

By: rudiger

rudiger — Sat, 28 Jun 2008 18:25:45 +0000

But she’s not unequivocally denying it.

Regardless, I think most would agree that it’s a foregone conclusion that Chrysler’s toast, and a Chapter 11 declaration will be forthcoming sooner rather than later.

By: ktristan

ktristan — Sat, 28 Jun 2008 17:30:29 +0000

Reminds me of the weeks before Enron collapsed. Same stuff, same denials: don’t worry, we’ll get through this, everything’s going to be ok…bla bla bla.

By: ZoomZoom

ZoomZoom — Sat, 28 Jun 2008 15:32:35 +0000

Y’know, years ago, I had a conversation with somebody who was a secretary in a department near me.

I had made the comment that a rumor seeded to just a couple of people would spread like wildfire. She didn’t believe me, the naive sweetheart that she was.

I don’t remember if she dared me, or if we made a bet, but I made two or three phone calls, told them to call so-and-so and congratulate her on her pregnancy. I did tell them she wasn’t pregnant, but just congratulate her anyway.

Because of the cubicle environment, overheard conversations and lunch/elevator/water cooler talk, the rumour DID spread. By the end of the day she was answering her phone with “so-and-so, and no, I’m not pregnant!”

Luckily for me, political correctness had not yet stained the landscape. She was very good-natured about it, not mad at all, and my point was made. I hope she is doing well these days.

Sometimes, if something is repeated often enough, it becomes very embedded in people’s minds, becoming it’s own reality of sorts. I don’t think that’s the case with the auto makers, but it can happen.

By: Pch101

Pch101 — Sat, 28 Jun 2008 14:24:13 +0000

If they go C11 what happens to Dumbler’s share?

The ownership wouldn’t necessarily change. It might get diluted if they need to raise more equity to fund a reorganization plan, but every owner would be affected.

A line of credit is a form of debt, so it is possible for them to be repaid at least some of what they are owed following a bankruptcy.

By: windswords

windswords — Sat, 28 Jun 2008 12:57:26 +0000

Wow, you work weekends too?

By: Robert Farago

Robert Farago — Sat, 28 Jun 2008 12:42:00 +0000

winswords:

If Chrysler is going C11, then Dumbler would know about it, after all they own 19.8% of the company. So why are they giving them 1.5 billion? If they go C11 what happens to Dumbler’s share? Either thy are not going C11 or the tri-dog is lying to the lords of Stuttgart the auto world.

The terms of the Cerberus deal included the $1.5 loan (due 2014). Daimler probably figures it’s cheaper than a lawsuit for false conveyance, or what it would have cost them to be dragged down by Chrysler.

By: windswords

windswords — Sat, 28 Jun 2008 12:39:14 +0000

By: 97escort

97escort — Sat, 28 Jun 2008 12:22:12 +0000

Cerberus likes to tout the benefits of being a private company that doesn’t have to periodically report financials. But it now appears that the lack of financial data is fueling the bankruptcy rumors.

If financial data were publicly available the rumors could be more easily put down. But everyone is in the dark and only has sales data, vendor claims and product line to judge Chrysler’s prospects. The verdict is bankruptcy.

Maybe staying public would have been a better move if the company’s PR spin is to be believed.

By: jolo

jolo — Sat, 28 Jun 2008 11:24:34 +0000

Steve Miller said the same thing about Delphi a few weeks before going into chapter 11. We discussed this before, GM has bankruptcy experts on their payroll. Who does Chrysler have that could lead them into chapter 11? Have they put any legal firm on retainer, at least publicly? Anyone know?

By: timd38

timd38 — Sat, 28 Jun 2008 10:51:26 +0000

It’s over, they just aren’t telling the customers that have a “lifetime power train warranty”.

By: Runfromcheney

Runfromcheney — Sat, 28 Jun 2008 02:58:44 +0000

I am sorry, but as the days go by, the more I think that my favorite automaker (Chrysler) is going to die. All the signs are pointing to chapter 11: very little money, uncompetitive product line that is out of touch with the times, and a parent who is only interested in stipping and flipping. Deny all they want, I am in severe doubt that there will be a Chrysler product that will have “6/09″ on the manufacturing sticker on the door.

By: George Labrador

George Labrador — Sat, 28 Jun 2008 01:53:39 +0000

This company is still promoting the RAM V8 too, makes you wonder when GM is not selling this type of Truck and Chrysler thinks its no problem eh?

By: Orian

Orian — Sat, 28 Jun 2008 01:06:54 +0000

I said it once and I’ll say it again – they’ll lie to you right up till the day it happens. Happened to me (and a bunch of others) at a company I worked for. They called us in for a meeting to address “rumors” that the company was being sold and assured us it was wasn’t. Ten days later we’re pulled into an all-hands meeting and told that we were sold and that everyone was going to lose their jobs in phases. Turned out the company that bought em was interested only in the assets, not continuing the business.

By: Jeff Puthuff

Jeff Puthuff — Fri, 27 Jun 2008 23:56:30 +0000

I just love it when the multi-millionaires reassure us peons that “everything’s okay, you’ve nothing to worry about.” After all, they’re looking out for us aren’t they?

By: JoeFotz

JoeFotz — Fri, 27 Jun 2008 23:51:57 +0000

They grabbed the 2 billion in preparation before filing… just like individuals that run up their credit cards on the way out. But there will be no restructuring, only the strip and flip what they can, so as to recover as much as possible.

By: Robert Farago

Robert Farago — Fri, 27 Jun 2008 23:05:55 +0000

paradigm_shift :

True. Text amended.

By: tulsa_97sr5

tulsa_97sr5 — Fri, 27 Jun 2008 22:59:53 +0000

My current company went thru two of them, it’s the sort of thing they have to deny right up till they release the press release that they filed. It’s a little different I guess since they are no longer public, but a lot of the same negatives would still hurt them if they were to admit it’s on the table. The trick to a good filing is you announce at the same time such a great restructuring plan that everyone gets a warm fuzzy feeling – ‘wow, they are in great shape, I can’t wait to invest/buy from them’

Wonder if we’ll see more of Lee once the event is about ready. He could fill a nice PR role for them if nothing else.

By: paradigm_shift

paradigm_shift — Fri, 27 Jun 2008 22:58:59 +0000

Chrysler spokeswoman Shawn Morgan wants the world to know that his employer

Somethings not right about that…