Posts Tagged Global economic

Car manufacturer’s third largest in the U.S. Chrysler has officially applied for bankruptcy after efforts to re-structure it is not successful. However, Chrysler also unexpected statement has achieved merger agreement with Italy’s Fiat car.

First, Chrysler will continue to maintain active and can end the bankruptcy within a few months.

30 / 4 is the deadline that the U.S. government set out for the car manufacturer Chrysler to this negotiation with creditors to reduce debt adjustment and go to a merger agreement with Fiat. These are the conditions necessary for Chrysler to continue the U.S. government is pouring capital and avoid risk bankruptcy.

However, several days after negotiations stress, Chrysler has not achieved debt reduction agreement with the small creditors. Chrysler is currently on loan some banks and lending organizations total cost of 7 billion USD. The creditors as banks Citigroup or JPMorgan Chase has accepted debt reduction for Chrysler, but the smaller creditors do not accept this proposal, despite requests from the Government of the United States.

Even so, Chrysler announced suddenly has met kidneys merger with Fiat, the car manufacturers of Italy will initially hold 20% share in Chrysler. This agreement also allows the Fiat holding of shares up to 35% of Chrysler if this Italy car manufacturer to invest in activities in the U.S. market and technology transfer produce small size for Chrysler. In addition, once Chrysler was completed for the payment of the loan was granted to the Ministry of Finance America, Fiat finally may own 51% share in Chrysler.

Of the charge also said that, in addition to shares owned by Fiat, 55% share in Chrysler will fund the health insurance of the automobile union America (UAW), organizations will pay health insurance in the retired employee of Chrysler. Left, the government, and Canada will hold shares in turn is 8% and 2% of Chrysler.

Chrysler has 3 manufacturing in Canada and need to reach agreement with the unions and the Government of Canada in the reclassified debt. While Chrysler will not apply for bankruptcy protection in Canada, but the government in this country that will support the USD 2.42 billion for Chrysler to help companies implement bankruptcy.

According to the bankruptcy under Chapter 11 U.S. Bankruptcy Code that Chrysler submitted to the Bankruptcy Court in Manhattan in this country, the U.S. government will give Chrysler the total capital up to USD 8 billion to maintain operations during the bankruptcy and return to normal activities after bankruptcy. For Chrysler, most of the production of carrier will be stopped on 4 / 5 to employers and will return to normal activities after an agreement with Fiat was completed.

Of the accountability for a company called temporary Chrylser “new” will be established to purchase the assets of Chrysler “old”, including brand name, factory, land, equipment, contracts of employers with the unions, suppliers, distributors … The amount of USD 2 billion from the sale of assets will be used to repay the loan the creditor may accept by Chrysler. U.S. government will use Chrysler hậu thuẫn Bankruptcy Law to refuse to perform the debt obligations led to this car.

Cerberus, the corporation owns the majority share in Chrysler, will lost the number of shares after the bankruptcy led to complete. Similarly, a Daimler, a shareholder holding 19% shares in Chrysler, will lost this number of shares.

Expected, there will be about 3600 distributors in the U.S. by Chrysler is closing. Finance department led to the car is Chrysler Financial will stop all the loan to buy a new car. Instead, finance department led to General Motors (GM) will provide loans for suppliers and customers of Chrysler.

So, Chrysler has to enroll in history with the first bankruptcy of a leading car manufacturer the U.S.. Department bankruptcy is U.S. Barack Obama is a dynamics that is particularly important in order to save 30,000 jobs at Chrysler and hundreds of thousands of jobs at suppliers and distributors of this car manufacturer .

Mr. Obama for, he hopes, the bankruptcy of Chrysler will take 30-60 days to complete. The bankruptcy of Chrysler will Arthur Gonzalez of court supervision. Mr. Gonzalez is also the man who oversees the bankruptcy first in the U.S., including the Enron and WorldCom service.

Chrysler manufacturer established in 1925 by Walter P. Chrysler. Immediately after 3 years, manufacturers have achieved a significant milestone when construction building the world’s largest when it is Chrysler Building in Manhattan, New York.

In recent years, Chrysler difficulties before the big competition in industry car. The points largest carrier is dependent almost entirely on the U.S. market, poor quality cars, many car production size voluminous effective use of fuel products into the lowest compared with the product’s manufacturer other large vehicles.

The financial crisis and economic degradation is taking place as drops of water spill cup, pushing Chrysler to shore in bankruptcy, whether employers have received 4 billion loan from the U.S. Government. The application for bankruptcy of Chrysler and led to an agreement with Fiat car this is observed as the place has important implications for the automobile industry in the world, including competitor and supplier Chrysler’s.

Bankruptcy Services also found that government’s Obama ready to take measures similar to the largest car manufacturer U.S. General Motors (GM). Last 5 months this will be the deadline for GM to complete activities to reduce costs and re-structure debt with creditors and left home at the request of the Government.

While GM and Chrysler right, the Ford, one of the major car manufacturers of America, still strong first crisis. (According to Reuters, CNN)