« Difficult to sell bonds
Wall Street is afraid of the carmakers »

Obama is considering bankruptcy of GM and Chrysler

The redevelopment plans of the U.S. car-makers to convince the government not. President Obama is in bankruptcy an option for corporations to reorganize. Now Chrysler meets at least one condition for fresh government money, the alliance with Fiat.
The ailing U.S. carmaker Chrysler has agreed on a cooperation with the Italian Fiat competitors agreed. The U.S. Treasury Department, the global alliance support, said Chrysler CEO Bob Nardelli on Monday. He was aware, however, that other high hurdles to be overcome.

The auto task force of U.S. President Barack Obama Chrysler previously had a deadline of 30 days set by the plans with Fiat finish. Obama had said that should negotiations be successful, will the Government on a further loan of $ 6 billion to reflect.

In the words Obama is a bankruptcy of General Motors and Chrysler an option to force companies to restructure and reduce debt. The two could help, “quickly to restructure and stronger from the crisis emerged. At the same time Obama was in Washington on Monday officially accepted the resignation of GM CEO Rick Wagoner announced.

The survival of the company could not by a “never-ending flow of taxpayers’ money” related. The government had “neither the interest nor the intention,” the leadership at GM to take over. The U.S. auto industry will not “just disappear,” said Obama.

The risk that the Company creditor protection under Chapter 11 of U.S. bankruptcy law apply also remains, according to the rating agency Standard & Poor’s (S & P) further up. “We think that the risk of bankruptcy for Ford, GM and Chrysler is large and remains,” said S & P auto expert Robert Schulz on Monday.

The U.S. stock markets built according to the statements Obama made their losses: the Dow Jones stood last 265 points, or 3.4 percent weaker at 7510 meters. The GM’s shares fell on the other hand, the daily loss at least 21 percent after the paper is already 34 per cent was recorded in the minus. The Dax closed the first time since 23 February 4000 Punte again at 3989 meters. At the end of trading amounted to minus 5.1 percent.

Obama criticized the reorganization plans of General Motors and Chrysler as inadequate and placed two groups in their boom period, the GM Opel’s parent receives for two months, a follow-on financing. During this time, the new group, under Fritz Henderson with unions, shareholders and creditors and negotiate them “painful” concessions abfordern.

Obama was convinced that General Motors has a chance of survival. “I am convinced that GM can wiederaufsteigen, provided that GM is undergoing a fundamental restructuring.” The previously submitted plans for this were not enough. Remedying of is also important for the survival of Opel crucial.

GM has $ 13.4 billion loan from the State, Chrysler, $ 4 billion. The two groups, which directly employ some 140,000 people, should be to Tuesday final redevelopment plans. Previously they had said they needed additional loans of up to $ 21.6 billion. Given the recession in the U.S. provides the industry with the worst slump since paragraph nearly three decades confronted.

Obama had already announced that he is aware of the concerns will require further concessions. The government would “by all parties involved in a number of victims, namely: management, employees, shareholders, creditors, suppliers and dealers – all have at the negotiating table.” Only a clear commitment to a drastic restructuring could build a better future for the companies guarantee, had Obama on Sunday told CBS television.

This entry was posted on Monday, March 30th, 2009 at 7:07 pm and is filed under Credit, FED, Recession, Wall Street. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.

istanbul escort