Chrysler C11: Cerberus Lost $7.4b, Daimler $37b
Bankruptcylitigationblog.com provides its readers—and there’s bound to be a whole new audience these days—with a ChryCo C11 crib sheet. The facts are predictably startling (if that makes any sense). The top 50 unsecured creditors’ claims total $730 million, with total trade at about $1.5 billion. The senior lenders’ claims total $6.9 billion. As you know, Chrysler owes the you, the people, $4 billion for your extremely generous bridge loans to nowhere (secured by a third priority lien). Chrysler owes Cerberus and Damiler AG $2 billion (secured by a second priority lien). Chrysler owes the United Auto Workers VEBA health care fund approximately $8.5 billion. Also highlighted: German automaker Daimler paid $37 billion for Chrysler when it purchased it in 1998. And lost it all. The “smartest guys in the room” (a.k.a. Cerberus) paid $7.4 billion for an 80 percent stake in Chrysler in May 2007. And lost it all. Checking the balance sheet, Chrysler has $52.6 billion in real liabilities, broken into the following categories: Trade and Related Payables ($5.7B), Accrued Expenses and Other Liabilities ($33B) and Financial Liabilities ($13.9B). The bloggers’ summary of the new plan after the jump.
With the plan presently on the table proposing basically an all equity plan, except for $2 billion to the senior lenders, a $4.6 billion note to the VEBA trust, and about $1.5 billion in trade payables and $4 billion in pension obligations assumed in the sale, we’re talking about losses of about $40 billion in claim value and an additional $43.4 billion in equity value!
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It's not his fault. Everytime there is a bad news announcement particularly for Windsor he gets to do the dirty work, so the people blame him. And then the $19 million bonus didn't help. I know he is very glad to get the opportunity to get out of that mess.
"A question to the bankrupcy lawyer: What happens to collateralized creditors?" The President of the United States berates them for no giving it up to the unions.
I thought Cerberus-controlled GMAC was sending out termination letters to Chrysler dealers, also. They are the new floorplan lender for Chrysler now as Chrysler Financial is all but kaput. GMAC specializes in killing dealers for GM so I am sure they will have no trouble doing that for Chrysler.