Chrysler is all set to sell most of its assets to Fiat and wanted to complete the deal prior to this weekend. However, that’s not happening after the deal between the two companies ran into a roadblock.
A threesome of Indiana construction and pension funds will fight the deal in a court of appeals on Friday. The three funds believe that the deal between Chrysler and Fiat is unfair in favor of unsecured stakeholders over secured debtholders.
The three Indiana funds in question are the Major Moves Construction Fund, the Indiana Teacher’s Retirement Fund and the Indiana State Pension Fund.
While the three …read more

Chrysler retired salaried workers were afraid their current healthcare benefits would not transfer to the new company that is being formed by the sale of Chrysler to Fiat. A group representing the retirees asked permission to form a committee to take part in the Chrysler bankruptcy process, but U.S. Judge Arthur Gonzales denied the motion for the committee on Thursday.
The attorneys for Chrysler said the committee wasn’t necessary because benefits would continue under the new company. And though that’s not guaranteed, Gonazles agreed that the committee wasn’t necessary as the decision about the benefits would be made by the Fiat …read more

Fiat CEO Sergio Marchionne reportedly will head Chrysler after the automaker emerges from bankruptcy within two months. Marchionne met with the U.S. government about his plans for the company, and is scheduled to meet with Chrysler executives to work out the details of the merger.
“Chrysler is on track to re-emerge from bankruptcy in 60 days. I will become Chrysler CEO after that,” said Marchionne.
The Italy-based Fiat aims to turn into a global force in the auto industry. They have interest in acquiring Saab and have already been in talks with GM about acquiriing its Opel and Vauxhall operations in Latin …read more

Ron Gettelfinger, the chief of the United Auto Workers, said on Monday that his union backs the idea of Fiat taking over the new Chrysler company. Chrysler, the American automaker that recently declared bankruptcy, will reportedly become part of Fiat once it re-emerges from bankruptcy. Both the White House and Chrysler believe that the bankruptcy proceedings should be completed in no more than 60 days.
While UAW will gain approximately a 55% stake in the new Chrysler company, Gettelfinger said that they will be selling the shares. The sale of the shares will go to pay for health care costs of …read more

Chrysler, the United States automaker that recently was forced to file bankruptcy, is trying to sell its assets to Fiat. However, there are still many obstacles that are in the way before the sale of those assets are complete.
The main obstacle is the creditors to which Chrysler owes money. Until the creditors are satisfied, the entire bankruptcy process will be held up. According to both Chrysler and the federal government, the goal is to have a bankruptcy process that can be completed in in no more than 60 days. At the end of the process, Chrysler is aiming to be …read more

Chrysler, the third biggest car maker in the United States, filed for Chapter 11 bankruptcy on Thursday. Although the company has been fighting for ways to avoid bankruptcy in recent months, their creditors continued to fight for their money and Chrysler decided it had no other option.
Already living off of federal bailout money, Chrysler will now get more bailout money — as much as $8 billion more. After filing in New York, the company says that they will attempt to restructure within the next month.
In the restructuring process, Chrysler will reportedly look to change many aspects. They will try …read more