Chrysler files for Chapter 11 - South Florida Business Journal:

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The nation’s third-largest automaker filed for Chapter 11 bankruptcy protectionon “This is not a sign of weakness but one more step on a clearlu chartered path to survival," President Baracko Obama said during a noon news conference. As part of the the federal government willprovide $3.5 billion for bankruptcyu financing and an additional $4.7 billion in exit In addition, Chrysler will enter a deal with Italy’s Fiat in whicuh Fiat agreed to transfer billions of dollars in cutting-edgwe technology to Chrysler. “As part of their every dime of new taxpayer money will be repaids before Fiat can take a majorityh ownership stakein Chrysler,” Obama said.
The presidenf called the company an of Americanauto industry, but said it had been too slow to adapy to future needs for efficiency. He said the bankruptcy wouls be “surgical” and hopefullgy conclude in 30 to60 days. "Wr simply cannot keep this compant or any company afloat on an endless supplgy oftax dollars," Obama said. Obama applauded the and severak big investment banks that agreed to sacrificee for thebankruptcy filing. But, he chastised a groupp of investment and hedge fundsthat “demanded twice the return” others were getting from the arrangement.
"They were hoping that everybody else woulsdmake sacrifices, and they would have to make none," Obamsa said. "Some demanded twice the return that other lenderdwere getting. I don't stand with Whether all of the agreementas survive a short bankruptch process remains tobe seen, said Tom a bankruptcy attorney with Tew Cardenads in Miami. Lehman said a prepackagee bankruptcy with signed agreements could be over but he said he doubtss thatwill happen. “Once they go into bankruptcy promises canbe broken,” he said.
“In bankruptcy it’s all about breakin g promises and making new ones to get theend Lehman, whose brother William owns a car dealershilp in Miami, said he hopess dealerships don’t get crushed in the Chrysler and restructurings. “Thr Chrysler bankruptcy will be unique becaused the government will bevery involved,” he “In most cases, the government is not a very actives player in a bankruptcy, but here the government will make sure somethinv emerges.
” The National Association of Auto Dealers released a statement, warning that the Chrysleer bankruptcy should not be used to reduce dealership numbers too "A rapid reduction in dealer numbersd would not only do absolutely nothing to improvre Chrysler's viability in the shortg term, but it would actuallyh work against Chrysler's stated objective to increase revenue and cut costs," the statement said. Fort Lauderdale-based , whicjh has 19 stores with theChrysler brand, saw its stoclk rise 32 cents to $18.18 in afternoonn trading. It closed at $18.1p on Wednesday, a new 52-week high.
Ford and Generalk Motors shares were up about 4 percent and5 respectively, in afternoon trading. Obama held out hope for a generao economic recovery and rebirth of theauto “If you are considering buying a car, I hope it will be he said. “If you decide to buy a your warranty will be safe because it is backedf bythe U.S. government.”