New Cash For Chrysler and GM But Time is Running Out

April 21, 2009

(ChattahBox) — Even as their time ticks away the U.S. government will make about $500 million available to Chrysler LLC through the end of this month as it seeks to reach an alliance with Fiat, and up to $5 billion through May to help General Motors Corp restructure outside of bankruptcy, an independent oversight report on the Treasury Department’s corporate rescue fund said on Tuesday. 

Chrysler faces an April 30 Treasury deadline to reach cost-cutting accords with the union and bank lenders as well as an alliance with Fiat. While some speculation indicates the two auto companies believe they are on track to reach a deal out of court, the Treasury Department kicked off meetings Monday with the heads of Chrysler LLC, Fiat SpA and the United Auto Workers union in Washington as signs increased that Chrysler could be headed for liquidation. The government could force Chrysler to file for either a Chapter 11 bankruptcy reorganization or Chapter 7 liquidation next week if deals aren’t reached.  Speculation is a tentative deal between the Auto Workers union and Chrysler likely has to be in place no later than the end of this week so workers can vote on it before the governments’ April 30 deadline.


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One Response to “New Cash For Chrysler and GM But Time is Running Out”

  1. Bankruptcy Help - ‘No end in sight’ - Pottstown Mercury « Bankruptcy Help on April 21st, 2009 8:09 am

    […] New Cash For Chrysler and GM But Time is Running Out – Chattahbox.com(ChattahBox) — Even as their time ticks away the U.S. government will make about $500 million available to Chrysler LLC through the end of this month as it seeks to reach an alliance with Fiat, and up to $5 billion through May to help General […]

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