According to an Obama official, the company will receive a $3.5 billion DIP from the U.S. government and up to $8 billion in total government financing, will file in NY bankruptcy court, and GMAC will take over financing duties.
The bankruptcy is expected to last 30-60 days (this is the biggest load of misguided garbage I have ever heard).
Other facts: Chryler will name a new board of directors and the Chrysler-FIAT alliance is expected to go through.
According to BO "Bankruptcy is not a sign of weakness." OK: are we talking about the same process where equity holders are wiped out and bondholders get pennies on the dollar?
Nothing like blaming Xerion Capital (a subsidiary of administration darling Perella Weinberg) once the UAW finds another 100,000 unemployed in its ranks in 3 months.
Anyone willing to take the under on the 30-60 days?
At least Bob Nardelli who single-handedly destroyed Home Depot and is now the proud supervisor of two massive corporate failures, is out . Great work Bob.
Up next: let's see if Government Sachs' exposure in Government Motors will cause the same rucus as a couple of bold hedge fund hold outs did for Chrysler.
PS - Is it a sign of the apocalypse if one agrees with Dennis Kneale?
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