Chrysler Gets New Aid, but End May Loom

Administration triumphs as bankruptcy effectively ends

(NEWSER) - Chrysler finalized its sale of assets to Fiat with a government wire transfer this morning that gave Chrysler $6.6 billion in funds to exit bankruptcy, the New York Times reports. The sale is good news for the Obama administration, which sought an “efficient” restructuring for Chrysler. It may also provide a glimpse into the future of General Motors, also navigating bankruptcy. More»

Billions of dollars in concessions sought from banks, bondholders

(NEWSER) - The government is pushing hard to wring billions of dollars in concessions from the creditors of General Motors and Chrysler, the Wall Street Journal reports. Insiders say Treasury has pushed GM to offer bondholders only stock in return for debt after it judged as too generous a deal involving stock, new debt, and some cash. More»

(NEWSER) - Barack Obama gave GM and Chrysler some tough love yesterday. Too tough, or too much love? Here’s what the papers are saying:

• Obama “delivered a believable, sharp, and necessary ultimatum,” says the Washington Post. He rightly demanded union concessions, and put bankruptcy back on the table.
• But the Chicago Tribune thinks Obama should have gone straight to bankruptcy. “An ultimatum is more believable if you haven't just failed to follow through on a previous one.”

(NEWSER) - GM and Chrysler got tough love from Barack Obama today, with the president declaring that they haven't made substantial enough changes to justify another federal bailout, and decrying the “failure of leadership” to come up with viable restructuring plans. Obama said the companies would have to regroup radically to survive on their own, not as “wards of the state.” GM will get 60 days worth of federal financing, and Chrysler 30; if they don't have a credible plan in place by then, the government may make them restructure through bankruptcy. More»

Administration offers 30 days more working capital before aid dries up

(NEWSER) - Chrysler cannot become viable on its own, says the White House's auto task force, recommending “quick and surgical” bankruptcy restructuring and the proposed Fiat partnership as the automaker's best shot at survival. The administration will provide Chrysler 30 days’ more working capital to finalize a deal, but the federal lifeline will then cease, the Wall Street Journal reports. More»