Meanwhile, Fiat put pressure on the process by saying that June 15 was its "drop-dead date" to sign a deal, and the U.S. Treasury Department calculated that it could only prop up the carmaker in bankruptcy for about the same six-to-eight weeks that dealers and suppliers could afford. Following that, Chrysler would be stranded.
Emergence from bankruptcy was also delayed by creditor and hedge-fund investors, who balked at the government bailout package, especially the idea that the autoworkers union would wind up owning more than half the company. By their lights, the government was providing financing in a way that would benefit the union workers at the expense of lenders.
Nevertheless, Chrysler sped through the process, and so far bondholders, which are owed $6.9 billion by the carmaker, will collect 29 cents on the dollar under the Chapter 11 agreement.
Reader CommentsDisplaying 1 of 1
Barry Carbaugh
Aug 10, 2009 10:03 AM ET
Speed is important but strategy is even more important
I applaud the speed of the bankruptcy proceedings for GM and Chrysler. But, in the case of Chrysler, I think they … more
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