Chrysler Declaring Extra Special Government-Guided Bankruptcy Today
Why couldn’t we have saved ourselves billions of dollars and just let Chrysler declare bankruptcy and restructure on its own? Because then the UAW and the federal government wouldn’t be primary shareholders in the company now.
Don’t ask dumb questions.
WASHINGTON (AP) - President Barack Obama announced Thursday that Chrysler would head into bankruptcy with the aid of up to another $8 billion in taxpayer money, a last-resort attempt to quickly restructure the struggling giant. He blasted hedge-fund creditors whom he said held out for a richer deal.
“No one should be confused about what a bankruptcy process means,” Obama said. “This is not a sign of weakness but rather one more step on a clearly chartered path to Chrysler’s revival.”
As part of the deal, Chrysler is signing a partnership with the Italian company Fiat. The government will be an investor in the revamped Chrysler and will help choose its new directors, but the Obama administration does not plan to help manage the company.
If you’re interested, the bankruptcy documents are embedded at the bottom of this post.
What is amazing to me is that just a scant few months ago Americans were being told that we had to bailout companies like Chrysler because they were “too big to fail.” We couldn’t let them go bankrupt because the impact on our economy would be devastating. Now…we’re letting Chrysler go bankrupt, but doing it in such a way as to benefit the UAW financially and expand the federal government’s control over the company.
This is transparently thuggish behavior on the part of our government…and nobody seems to be calling them on it.
Chrysler Bankruptcy - Get more Business Plans
