Chrysler In Bankruptcy; Administration Works To Contain Fallout
The most important thing the administration wants you to know about the Chrysler/Fiat talks is that they continued until the last moment. There was no breakdown.
"After a month of tireless negotiations, the Administration went into yesterday afternoon with the full support of Chrysler's key stakeholders, including the UAW and the largest creditors. That support remains," a senior administration official e-mailed this morning.
"The remaining creditors were provided a final opportunity to approve an increased offer of $2.25 billion. They were given a deadline of 6 pm Wednesday."
"While the Administration was willing to give the holdout creditors a final opportunity to do the right thing, the agreement of all other key stakeholders ensured that no hedge fund could have a veto over Chrysler's future success."
"Their failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward."
Step one: the CEO, Richard Nardelli, will leave.
Step two: the process, which will be fairly quick -- no more than 60 days.
Step three -- ?
We'll hear from the president at noon ET, after a background briefing from administration officials at 10:45 am.