bankruptcy planning
Chrysler bankruptcy plan in basic terms?
HI,
Please tell me the Chrysler bankruptcy plan in simple terms. I’m not familar with economics very much and I don’t understand how merging with Fiat will pay their debt in the next 30-60 days. What are the details in basic terms?
The most clearly explained answer that also includes a relevant and reliable link will get best answer.
PS.I’ve read a lot of links already and don’t get it still.
Thanks.
A chapter 11 bankruptcy (it’s called that because there are different procedures in the different chapters of bankruptcy law) basically allows Chrysler to a.) temporarily stop creditors from demanding payments or putting claims on Chrysler’s assets b.) submit a business reorganization plan to a judge for payment of those creditors over a 5 year period, sometimes longer. The judge may reduce the amount of the debt owed or the change the interest rate. The judge will meet with Chrysler and Chrysler’s creditor’s and make a judgement on the reorganization plan. The judge is basically deciding whether Chrysler as an ongoing company can earn enough money to pay off its debtors or if the firm should be liquidated. The overall plan that Chrysler has submitted involves giving stock to its major creditor, the UAW health care fund in exchange for not making the payments it owes the fund. That amount is about 55% of the company. FIAT is willing to trade its technology and engineering in various small and mid-size cars for a 35% interest in the company (that way Chrysler doesn’t have to spend money it doesn’t have to develop new cars) The federal government (US taxpayers) will get about 10% of Chrysler in exchange for about 15 billion in loans to be paid back when (if) Chrysler is successful in the future. Most of Chrysler’s creditors are in agreement with the plan, however some Wall St. firms which loaned money to Chrysler held out and forced the firm to file for bankruptcy. It normally takes about a year for a firm to go through the legal procedures of getting a reorganization approved in court, however the President is pushing this through on a fast track, and hopes to have it done in 60 to 90 days. There are more details and their will be more to come out over the next months Check out businessweek.com and autolinedetroit.com May God help us all!
|
|
Christian Financial Concepts (See God’s Principles of Stewardship Working) $29.99 We are embarked on a quiet revolution with a simple battle cry – Teach God’s people God’s principles of stewardship and life. Did you know that the average American spends $1.20 for every $1.00 earned? Or that one in twelve households have declared bankruptcy in the last seven years? Did you know that 37 percent of adults attending church once a week gave nothing, and only one-third of church g… |
|
|
Dave Ramsey’s Financial Peace University: Bankruptcy Edition $90.00 In Financial Peace University: Bankruptcy Edition, you will learn: - How to change your family tree forever! - How Dave uses the powerful combination of humor, visual aids, props, and personal stories to help teach thousands of families like yours how to Beat Debt and Build Wealth! - The common sense money management principles you need to start to rebuild your financial life. - How over 200,000 f… |
|
|
Managing Your Money All-In-One For Dummies $7.40 Want to take control of your finances once and for all? Managing Your Money All-in-One For Dummies combines expert money management with personal finance tips. From credit cards and insurance to taxes, investing, retirement, and more, seven mini-books show you how to improve your relationship with money â no matter your age or stage of life.This easy-to-understand guide shows you how to asses… |
|
|
Public Dollars, Private Stadiums: The Battle over Building Sports Stadiums $17.00 “This revealing, dead-on investigation of the modern-day sports stadium boondoggle, and its often-devastating impact on American cities, is an essential read for anyone, sports fan or not, who wants to avoid getting fleeced.”-Steve Lopez, Los Angeles Times columnist and former columnist for The Philadelphia Inquirer and Time magazine “Public Dollars, Private Stadiums helps us understand the pol… |
|
|
Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time $13.98 Reduce your debts, save your property — and start over! Are you behind on your mortgage, taxes or other bills? Are creditors threatening foreclosure or repossession? This book will show you how to save your house, car and other assets with Chapter 13 Bankruptcy. It lets you cancel your debts and pay off the rest with an affordable repayment plan. And now you can avoid attorney fees and do… |
|
|
Quicken Lawyer Home & Small Business Legal Suite 2003 $69.99 Quicken Lawyer Home and Small Business Legal Suite 2003 delivers four great products to your desktop: Quicken Lawyer 2003 Personal, Quicken Lawyer 2003 Business Deluxe, the Encyclopedia of Everyday Law, and Neighbor Law: Fences, Trees, Boundaries, and Noise. A complete resource for home owners, families, and small businesses, this suite keeps you abreast of everyday home and workplace issues and r… |
