It will be interesting to see what happens... The Viper business unit will likely go for a lot less in BK court than it would have otherwise. My guess is that a BK filing will either slow down the sale of the business unit since the sale would have to be overseen by a BK judge, or Chrysler will choose to keep the business unit now that the unsecured debt holders will be wiped off the books. Either way, let's hope that the parts suppliers and contracted service companies aren't holding off on deliveries because that would really gum up the works.
I would suspect any vendor would require prepayment on any order from Dodge before producing parts. So long as that has occurred the parts should still flow.
But, isn't CAAP closed this week due to insufficient parts?
My guess is that, unless they get the deal done before a BK filing (unlikely with this news) the deal won't happen. In BK court, the business unit will be extremely undervalued and it would make more sense for them to keep it. But, then again, I don't know how the whole thing will be 'structured' as the feds seem to imply it will be. They might just wipe out the unsecured credit holders and renegotiate terms with the UAW while guaranteeing ongoing operations. In any case, I smell Viper inflation soon...
I'm hoping something positive is announced. I'm sure all parties to the transaction have been planning on the likely BK announcement at the end of this month, so hopefully that's worked into the deal. In my limited experience when dealing with BK reorganizations, it can really screw up an aquisition. The minute Ch. 11 is filed, everything comes to a halt and an extra layer of red-tape and judicial oversight gets added. If this is something that was planned for, and they really want the deal to get done, it will happen before the April 30 deadline so that it doesn't get halted by the BK process. Interesting times indeed.
Cerberus holds Chrysler Financial and Auburn Hills Properties (Chrysler tech Center and other non production properties) separately. They made up with the devil (Daimler) so they would come up smelling like a rose no matter what! whoever said you could trust a private equity firm.
BTW, you did see that the CAW (Canadian Auto Workers) reached a tentative agreement with Chrysler late last night? That was one of the roadblocks to avoiding bankruptcy from what I understood...
Dumped the 300c awd today and got my wife an Accura tl awd. Deecided to get out while the chrysler was still worth something. Will keep the Viper forever however. GTS Bruce
YES and in Jan. they got 1.5 Billion and I used a portion at 0 % financing for my 09. They have the usual Indian outsourcing though when you call to discuss your account. More threads to come on this deal..........
If the deal works out all cars will be dumped. Chrysler to make jeep,minivan,truck and sell fiat cars with dodge nameplates. BK still likely even if a deal is made to shed costs,unions,pensions etc,etc. GTS Bruce
If the deal works out all cars will be dumped. Chrysler to make jeep,minivan,truck and sell fiat cars with dodge nameplates. BK still likely even if a deal is made to shed costs,unions,pensions etc,etc. GTS Bruce
Pensions and retiree health care will be protected. I have a 25-year pension at stake.
"The Treasury has an agreement in principle with the United Auto Workers union to protect pensions and retiree health care benefits as a condition of the bankruptcy filing, the paper said."
Pensions and retiree health care will be protected. I have a 25-year pension at stake.
"The Treasury has an agreement in principle with the United Auto Workers union to protect pensions and retiree health care benefits as a condition of the bankruptcy filing, the paper said."
It has only been stated UNION pensions will be protected. Note also that has been said before and during bankruptcy proceedings the banks and creditors have won and had major reductions in said guarantees. Believe it if you will but the banks are in control.
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