They are more in the Exchange and networks5 billion or slightly more than 2 euros per shareWhile he came to the phenomenal war Treasury EUR 11There is if long yet here were opium dens3 million exercise of overallotment option But it is quitedecouplethese two aspectsThey present their results on their own placeuntil the end of the demonstration in midAugustResult the most varied profiles have their chanceFinally the creation of a Green Bank with 7The possibility of a development under Chapter 11 of the third us automaker approximates nearer. According to some experts, even in agreement with its main creditor banks (JPMorgan Chase, Citigroup, Goldman Sachs) on the reduction of its debt, Chrysler shareholders would benefit from its strategic alliance with Fiat materializes in a judicial proceeding of rapid reorganization, on the model of the procedure used in the aviation industry (United Airlines)(, Northwest or Delta Airlines) in the early 2000s. This would then allow the Fiat group to conclude an agreement of existing assets. The Italian has already announced that it might take 20 of Chrysler initially, then climb to 35 and 51 term.
Despite a ultimate counterproposal of banks to abandon 46 of their claims, Obama administration would now see the path of the judicial remedy as the most appropriate solution for a radical restructuring of the group, even if use of "test" for the future of GM. A way, according to Lawrence Summers, economic adviser to the White House, to give to the group "the legal means of better work". "". Consider all options. "At this stage, it is a basic duty of precaution to prepare a collective procedure," qualified Democratic Michigan Senator Debbie Stabenow. Officially, the US Treasury hopes still avoid an organized bankruptcy. For its part, the Vice President of Chrysler, Jim Press, sought to reassure dealers with an emphasis on the will of the manufacturer to reach an agreement with creditors snatching before April 30. If the four creditor banks (JPMorgan Chase, Citigroup, Morgan Stanley and Goldman Sachs), who hold 70 of the guarantee of Chrysler debt ($6.9 billion), are not opposed to one abandonment of significant debt, other bondholders primarily of "hedge funds" are more reluctant.
Risk impact
"Some creditors which previously covered by CDs contracts ("credit default swaps") may have interest to refuse a renegotiation of their debt or simply do not participate in the restructuring plans in the hope that the company default and raises the guarantee", explains Matthieu Grollemund, counsel to the New York law firm Paul Hastings. For many economists, the interest of a "prepackaged bankruptcy" (organized bankruptcy) would be to give the Government free rein to carry out a rapid reorganization of Chrysler in obtaining the agreement of the creditors on a restructuring of the debt and an abandonment of debts through informal negotiations and avoiding liquidation.
Even if recourse to Chapter 11 has lost its dramatic connotations in the United States since its successful use in air transport from 2002 to 2005, many observers feel its impact risked for a car manufacturer. So far, Fiat, which is the operational direction of Chrysler, always excluded recourse to Chapter 11. But, according to the Wall Street Journal, the Financial Director of Chrysler, Ron Kolka, have entrusted to banks, even in the case of agreement with creditors on debt, the American manufacturer likely not escape a collective procedure. Section 363 of the U.S. Bankruptcy Code would allow the buyer to sort in the assets of Chrysler restructuring including its network of dealers at the lowest cost.
According to the latest proposal of the Treasury, creditors were asked to give up to $ 4.5 billion of debt of 6.9 billion, in exchange for a 5 stake in the capital of the "new Chrysler" (against an initial demand of 40). At the same time, Chrysler management continued, this weekend, its negotiations with the UAW Union (United Auto Workers) on the restructuring of the Fund management of coverage health Veba (Voluntary Employee Beneficiary Association) established in 2007. In lieu of first step, an interim agreement was concluded, this weekend, between Chrysler and the CAW (Canadian Auto Workers) Union to reduce local hourly wages of the workers of Chrysler to the Canada of 76 to 57 dollars, a level near that of Toyota. "Task force" set up by Barack Obama ruled out any extension of the period of Grace granted to Chrysler to renegotiate its agreement with Fiat.
