Fiat's Chrysler plan may be the only one
A bankruptcy judged ruled against a group of Chrysler's creditors who were trying to block the deal with Fiat. The opposition claims the plan is illegal, but Stephen Beard reports it's unlikely anybody else would offer a better one.
A Fiat logo on a keychain (Sean Gallup/Getty Images)
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TEXT OF STORY
Bill Radke: Cost-cutting is something Chrysler failed to do in time to avoid bankruptcy. Now, the company is a step closer to merging with Italy's Fiat. Late yesterday, a judge ruled against a group of Chrysler's creditors who were trying to block the deal. Stephen Beard has more.
Stephen Beard: A bankruptcy judge has ruled that the Chrysler plan is fair. Chrysler and the U.S. government want a quick sale of most of the company's assets. They want to sell to a new firm partly-owned by Fiat.
A group of Chrysler's secured creditors oppose the plan, calling it illegal. They claim their interests have been ignored, and that with a bit more time a better deal could be struck. The judge rejected the claim, and in effect, said "let the bidding begin."
Analyst Professor David Bailey says it looks like a shoo-in for Fiat:
David Bailey: Given the state of the economy and given the state of the car market, generally I find it highly unlikely that anybody would come forward and offer a better deal for Chrysler. And I think basically, it's Fiat or bust for this company.
The judge has called for all bids to be in by May the 20th. There'll be a final hearing on the 27th. The deal could be sealed and delivered by the end of June.
In London, this is Stephen Beard for Marketplace.
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From WV, WA, 05/06/2009
WHITE HOUSE INTERFERENCE
Chrysler and its “rogue” debt holders shouldn’t give in to the Administration’s bully pulpit.
http://pacificgatepost.blogspot.com/2009/05/dilettantes-at-chrysler-gate.html
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