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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (303255)	4/30/2009 7:42:27 PM
From: LindyBill	Respond to of 793964

The judiciary is usually resentful of being strong-armed by Washington. You can be sure they won't let this go to a Bush-appointed bankruptcy judge.

To: Nadine Carroll who wrote (303255)	4/30/2009 7:49:38 PM
From: rich evans	Read Replies (2) \| Respond to of 793964

Chrysler has announced that it will sell to another entity created under section 363(b)(1) of the Bankruptcy act. New Chrysler will emerge as a much smaller company with Fiat technology and the ownership could end up as proposed by US with the secured bondholders getting very little depending on the sale price of the wanted assets to the newly created entity. Chrysler is basically liquidating and its desirable assets are being transfered to the new entity. Old Chrysler will keep the claims, other assets and will be basically getting stock as payment for the assets transfered and the stock could be divied up about like proposed by the government because the Government will have priority for its DIP financing. Of course the secured bondholders will be asking for more but may not get it as the government will get paid first for their DIP financing which could be most of the stock proceeds from the new entity. But with no legacy costs, new work rules and fiat technology you basically have a new auto company. Not your fathers Chrysler. The new entity will not have to worry about claims from dealers, bondholders, unions etc. That will stay in Bankruptcy court to be argued about. The new entity will be clean and emerge very quickly with the assets they want from Chrysler. Thus it will happen withing 60 days as to the new entity which will proceed and enter into new deals with suppliers, union, dealers etc. So I guess this is bullish after all. Rich