No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Chrysler headed into Chapter 11

by @ 8:26 on April 30, 2009. Tags:
Filed under Business.

Reuters is reporting that Chrysler, LLC. is headed to bankruptcy after several holders of secured debt refused the Treasury/TARP banks/Chrysler last offer of $2.25 billion in cash in exchange for retiring the $6.9 billion in secured debt. As I noted last night, it’s a risky proposition for both the hedge funds thinking they’ll do better than the 32.6 cents on the dollar they would have received in the cramdown (sources say that in a liquidation they’d get closer to 50 cents on the dollar) and the Obama administration/UAW/Fiat plan to turn Chrysler into UAW Motors presented by the United States Government as it goes to the whims of a judge.

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