"But some of the 46 banks in total that hold Chrysler debt are reportedly resisting the offer.
Without having them all step up, "it would still be necessary for Chrysler to go through what we call our 'surgical bankruptcy' -- 30-day type of process -- in order to in effect drag along any banks that choose not to participate," an anonymous source told the Detroit News."

That 30% which hasn't yet agreed to concessions can and most likely will push Chrysler into bankruptcy. Here's the full article:

http://www.marketwatch.com/news/stor...86}&siteid=rss

 

Looks like we'll find out what happens tommorow!!! If I was a betting man I'd be willing to bet there wont be no bankruptcy!!

 

No, there will not be, check other post in this section. Fiat is going to sign. Which means the goverenment will end up giving them more aid and with Fiat in the mix more to work with.

No liquidition, and it appears no bankrupsy.

 

I was just pointing out that what you are saying is not yet confirmed. It is still speculation. There is still a lot that has not officially been completed.

Is it likely that Chrysler avoids bankruptcy and Fiat signs? Yes. Is it certain? Not at all.

 

Here's some more proof that even if Fiat signs, Chrysler may still have to go through bankruptcy (albeit Chapter 11 instead of 7):

"The people said Wednesday that despite the partnership, Chrysler could still wind up under Chapter 11 bankruptcy protection for a short time if some creditors don’t agree to reduce their debt. But they said the government would agree to finance the restructuring rather than cut off Chrysler’s aid and leave it destined for liquidation."

Full article here: http://www.msnbc.msn.com/id/30481879/

 

Chrysler is definitely filing bankruptcy:

http://money.cnn.com/2009/04/30/news...ney_topstories

 

I sure am glad I'm not a betting man, I was wrong!!!

 

Its all good though. I mentioned it elsewhere. It will clear their debt. Their lenders will take it up the rear and get pennies on the dollar, which is what Chrysler was offering to begin with. I think the creditors were banking (no pun intended) on the government saying no to bankruptcy so they would liquidate Chrysler and the creditors in turn would get much more if not all their cash, at least that is the only thing that makes sense to me.

Once all that bankruptcy stuff is filed Fiat will sign, Chrysler will then continue to provide vehicle and cover warranties as well as introduce the Fiat line at their dealers. At least that is how I see the warranty thing playing out. I have trust (go ahead, flame me for this) that our government will not allow any concessions in terms of warranty under bankruptcy protection.

 

Well, I know why at least some (9%) debt holders were holding out - they had credit default swaps purchased, so they were going to get paid 100% if Chrysler went under - that's why they didn't want to agree to pennies on the dollar. Since I don't know the exact details of their debt, or the swaps, I can't say what will happen in bankruptcy, but it can't be much worse than what Chrysler was offering before hand.

The other 21% who held out were most likely hoping for Chapter 7 (liquidation) so that they could get more than what Chrysler was offering, but it does not look like that is happening.

 

They held out and lost it all, Obama is very upset with them and they will now get nothing under chapter 11. Greed will get you nowhere.