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!"
Posted by: angelos_peter | December 5, 2008 4:21 PM | Report abuse
Posted by: LOONYBIN2000 | December 5, 2008 5:19 PM | Report abuse
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