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US GOVTS: Chrysler To Go Into Bankruptcy, White House Says
Thu, 30th Apr 2009 17:15
Washington, Apr 30 2009 (IFR) - The Obama Administration announced today that it will allow failing automaker Chrysler to go into bankruptcy.
'With reluctance, we've decided to go through with a surgical bankruptcy,' senior administration officials told reporters today. The US government will provide between $3 bln and $3.5 bln in financing for the bankruptcy and about $4.5 bln in exit financing. Administration officials said the sum is 'consistent' with the resources authorized by the President on March 30. At that time, President Obama had promised $6 bln to Chrysler if it could successfully reach a deal with Italian automaker Fiat.
The bankruptcy process is expected to take between 30 and 60 days, during and after which Chrysler will maintain its management team. The government will be selecting private professionals to serve on Chrysler's board. Senior administration officials stressed that the bankruptcy would have no negative bearing on the company's deal with Fiat and that no plant shut-downs or employment cuts are planned.
tessa.moran@thomsonreuters.com
/wash
COPYRIGHT
Copyright Thomson Financial News Limited 2009. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
'With reluctance, we've decided to go through with a surgical bankruptcy,' senior administration officials told reporters today. The US government will provide between $3 bln and $3.5 bln in financing for the bankruptcy and about $4.5 bln in exit financing. Administration officials said the sum is 'consistent' with the resources authorized by the President on March 30. At that time, President Obama had promised $6 bln to Chrysler if it could successfully reach a deal with Italian automaker Fiat.
The bankruptcy process is expected to take between 30 and 60 days, during and after which Chrysler will maintain its management team. The government will be selecting private professionals to serve on Chrysler's board. Senior administration officials stressed that the bankruptcy would have no negative bearing on the company's deal with Fiat and that no plant shut-downs or employment cuts are planned.
tessa.moran@thomsonreuters.com
/wash
COPYRIGHT
Copyright Thomson Financial News Limited 2009. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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