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Chrysler Hires Bankruptcy Expert

Chrysler hired outside bankruptcy experts to judge what impact would be felt by the U.S. auto industry if Chrysler declared Chapter 11 bankruptcy, the company said moments ago. Here is the entire statement:

"During the initial Congressional hearings in November, the automotive industry was asked to study why bankruptcy was not a better alternative for restructuring, versus the working capital bridge loans requested.

In response, Chrysler LLC engaged outside advisors, including Jones Day, in order to provide a comprehensive independent analysis of the various options available to the company.

The results of this evaluation determined the impact to the overall domestic automotive industry would be devastating.

This conclusion was confirmed by the committee’s independent expert witness, the economist Dr. Mark Zandi, of Moody’s Economy.com, 'Bankruptcy at this point in time, would be cataclysimic [sic] for the economy.' "

You can take this one of two ways:

A) Chrysler has or is continuing to seriously consider bankruptcy. Or

B) Chrysler doesn't want to declare bankruptcy and commissioned the study to prove how bad things would be if the company went bankrupt. This way, Chrysler's chances of getting federal bailout money likely would improve.

As they used to say on the football commercials: "YOU make the call!"

-- Frank Ahrens
The Ticker is Twittering!

By Frank Ahrens  |  December 5, 2008; 3:36 PM ET
Categories:  The Ticker  | Tags: Chrysler, bankruptcy  
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Next: Dec. 5, 2008

Comments

If you believe any communication coming from Cerberus or from any organization retained by them, I have a Bridge To Nowhere that you might like to purchase.

Posted by: angelos_peter | December 5, 2008 4:21 PM | Report abuse

NO BAILOUT MONEY FOR THESE MONKEYS

GWB IS IN FAVOR OF BAILOUT. SINCE THE "TIN MAN" WITHOUT A BRAIN THINKS THE BIG THREE SHOULD GET GOVT. MONEY - CONGRESS DONT DO IT. GWB HAS NOT BEEN RIGHT IN RIGHT YEARS. OF COURSE, IF HE WANTS TO HE SURELY CAN DIG OUT SOME PETTY CASH FOR THESE JET FLYING CEO'S OR MAYBE BY THEM A PEPSIE TO COOL THEM OFF!. CONGRESS, THE MONEY BELONGS TO THE PEOPLE AND OVER 60% say "no" doesn't anyone in d c listen to the people THAT YOU WERE ELECTED TO REPRESENT????

Posted by: LOONYBIN2000 | December 5, 2008 5:19 PM | Report abuse

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