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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (483875)	5/28/2009 4:23:58 PM
From: combjelly	Read Replies (1) \| Respond to of 1573902

"By giving the title of the asset to an un-secured creditor, taking it from secured creditor." That isn't what was done, though. Under Chapter 11, several things can happen, depending on what the judge decides. In this case, it looks like the judge has decided that Chrysler should continue operations and the creditors will just have to be satisfied with the available cash. Now the new company gets divided up according to how much more the various parties are willing to contribute. Most of the creditors aren't willing to contribute anything more, so they are now junior partners. The union will be making various concessions and were given a larger chunk. The US and Canadian governments are ponying up bucks so they get a larger slice. The creditors don't always get much of a chunk of a reorganized company. Sometimes they do, but not always. And not in this case, either.