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Bankruptcy 'New Lease on Life' for Chrysler: Obama

By Harry Kimball,  Newser Staff

Posted Apr 30, 2009 12:14 PM CDT

(Newser) – President Obama said today that Chrysler’s impending bankruptcy is “not a sign of weakness but one more step” towards recovery, the Washington Post reports. The 1-to-2 month “surgical” bankruptcy—a time frame met with skepticism by experts—will give the automaker a “new lease on life,” Obama said. The president claimed that the filing and a partnership with Fiat would save “tens of thousands” of jobs.

Though the president said he was hopeful about the bankruptcy, he had harsh words for the lenders who made the process so difficult. “A group of investment firms and hedge funds decided to hold out for an unjustified taxpayer-funded bailout. Everybody else would have to make sacrifices and they would make none,” Obama said. “I don’t stand with them. I stand with Chrysler's employees.”

The Chrysler Stamping Plant in Twinsburg, Ohio.
The Chrysler Stamping Plant in Twinsburg, Ohio.   (AP Photo)
President Barack Obama makes remarks on the automotive industry today.
President Barack Obama makes remarks on the automotive industry today.   (AP Photo)
Chrysler Chief Executive Officer Robert Nardelli.
Chrysler Chief Executive Officer Robert Nardelli.   (AP Photo)
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COMMENTS
Showing 2 of 2 comments
woodyTX
Apr 30, 2009 8:07 AM CDT
I believe in Chrysler's case the gov't support totalled $4.5 B or so. Other debtholders are i nfor about $7 B. Whether the gov't will get to convert its debt coverage on Chrysler into an equity stake after it re-emegrges from CH 11 is an interesting question.
northeast
Apr 30, 2009 6:25 AM CDT
Translation: Whoops, I guess I probably shouldn't have spent all that money so that they wouldn't go into bankruptcy. Now that we've thrown out over 100 billion on a failed plan, I guess I'll follow the only step left and act like that was my plan the whole time.

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