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The good is Chapter 11 is avoided, the bad the Govment will own 10% of chrysler...

Source:Allpar.com

http://www.allpar.com/news/index.php/2009/04/daimler-ag-gives-up-chrysler-stake-writes-off-700m/

Daimler AG gives up Chrysler stake, writes off $700MApril 27th, 2009 by Bill Cawthon
German automaker Daimler AG has agreed to give Cerberus Capital Management its 19.9 percent share of Chrysler LLC and write off a $1.5 billion loan, helping the Detroit automaker to clear way for the Detroit automaker’s proposed alliance with Fiat SpA and avoid bankruptcy.

Daimler today signed a term sheet with Cerberus Capital Management and the U.S. Pernsion Benefit Guaranty Corp. The agreement ends the DaimlerChrysler era, which left Chrysler in a shambles, followed by Cerberus’s acquisition, which burdened Chrysler with billions of dollars in debt.

Under the deal, Cerberus and Chrysler will waive all claims against Daimler and Chrysler will make three annual payments of $200 million each into the company’s pension plans, beginning on Thursday, April 30 and on the same date in 2010 and 2011. Daimler, which had already written the value of its stake down to zero, will take an expense of $700 million against pre-tax earnings in the second quarter.

In a statement, Daimler said:

“Daimler’s remaining 19.9 percent shareholding in Chrysler will be redeemed, and Daimler will forgive repayment of the loans extended to Chrysler, which were already written off in the 2008 financial statement.”

The Daimler statement also said, “Following the transfer of the term sheet into the final definitive agreements, the relationship between Daimler and Chrysler will solely consist of dealer-supplier-customer relations including limited support for certain dealer financing until the end of September 2009.”



http://www.allpar.com/news/index.php/2009/04/post-chrysler-creditor-deal-concluded/


Post: Chrysler creditor deal concludedApril 28th, 2009 by DaveAdmin
According to the Washington Post, Chrysler’s creditor group has reached an accord with the Treasury Department which will, coupled with this week’s union deals, prevent bankruptcy. A group of 45 financial firms have agreed to drop their debt demand from $6.9 to $2 billion and around 10% of the company’s equity, shared with the U.S. government. The UAW’s VEBA fund would take a 55% share, in exchange for handling retiree benefits (replacing up to $10 billion in cash), and Fiat would gain 35% of Chrysler. Daimler’s 19.9% stake was given back yesterday; Daimler also agreed to pay $600 million to the pension plan over three years, and to forgive $1.5 billion in loans, presumably in exchange for Cerberus dropping a lawsuit charging Daimler with misleading the private equity firm.
 

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Thats better then GM faired. The Gov't holds controlling shares with them... As per the news tonight.
 

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Ford still holding its own....LOL
What a bunch of whiners... and us taxpayers have to bail them out even after BILLIONS in loan forgiveness... Guess it helps that the one of the Cerberus Capital Management members is our former VP.
 

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I am glad that this appears to be settled now, I am tired of worrying about who was going to have Jeep...
 
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