He will soon hold 30 of the voting rightsPassengers who sail to Corsica are lovers of nature68 million to various venture capital fundThere is a pole bio health but he limpingwithout that laidoff employees are compensatedA thrill that begins to resemble a renaissanceHome does not hesitate to revisit its heritageAnd for now society is still subscribed to the lean regimeAvishai Cohen and Goran Bregovic Sunday eveningFind our folder on the Clearstream trial onIt is rare to see Barack Obama go. Surrounded by his Chief Economic Advisor, Lawrence Summers, the Secretary of the Treasury, Timothy Geithner, and members of its "task force" car, the American President has yet not hidden his spite, Thursday, in Washington. Because, to the end, the Obama administration will have all tried to save Chrysler without resorting to the infamous "bankruptcy" procedure (the "B word" as Americans). But, because the accession of a handful of "hedge funds", stigmatized as "speculators" selfish by the President, the Chrysler-Fiat agreement will have to first go through a judicial procedure accelerated thirty to sixty days.
"Chrysler and Fiat have developed a partnership which has a strong chance of success." "It will save more than 30,000 jobs at Chrysler and the tens of thousands of jobs at its suppliers and dealers," welcomed Barack Obama to the White House. While welcoming the "sacrifice" of the creditor banks, which agreed to remove two-thirds of the debt of 6.9 billion in Chrysler, he criticised the attitude of a "small group of speculators" (hedge funds and investment funds), who requested "2 times more than the other" and thus caused the Detroit manufacturer to stand under the protection of Chapter 11 of the bankruptcy plan.
A vigorous plan of assignment
Targeted investors include Oppenheimer Funds, Stairway Capital Management and Perella Weinberg Partners, even if the latter had joined, too late, the initial offer of the Government. While about the use of a procedure already used in the early 2000s for the aviation industry, the administration established a simplified device which should conclude the procedure ' here at thirty or sixty days "through a vigorous plan of assignment. According to the text of the motion before the Court of bankruptcy in New York, Chrysler will transfer most of its assets to "new Chrysler" in exchange for $ 2 billion "in cash" and the recovery of a number of obligations. At the end of the transaction, the UAW Union (United Auto Workers) will become the main shareholder of 55 (but without voting rights) of a Chrysler cleaned up through its fund to cover health Veba (Voluntary Employee Beneficiary Association), to the side of Fiat (at 20), Treasury (to 8) and the Government of Canada and the province of Ontario (2). In exchange for 20, Fiat will give Chrysler a free license on all its rights of intellectual property and "know how" technology (the Italian manufacturer does not provide for cash). In addition to the choice of three administrators in nine, Fiat will have the faculty to climb to 35 in the capital of Chrysler in three steps: provision of a platform for the production of a vehicle energy saving, opening its international distribution network in South America and Europe to Chrysler, and production of new clean engines of the "last generation" in the United States. Term, Fiat will have an option up to 51 between 2013 and 2016, according to government loans.
Marchionne is the position of President and CEO
To ensure the relaunching of the constructor, the US and Canadian Governments (with the province of Ontario) will agree to the new Chrysler loans of 8 and $ 2.4 billion, repayable over eight years, GMAC (GM financial services subsidiary) being responsible for the funding of the credit to individuals. "It is only when the taxpayer will be refunded to the last dollar that Fiat will be able to take the majority of Chrysler capital", said Barack Obama. To alleviate the debt inherited from the "old Chrysler", the manufacturer provides to transfer eight of its plants (including three in Detroit) by 2010.
"I am disappointed, but it is the only possible way to ensure the survival of Chrysler", acknowledged the current CEO of Chrysler, Bob Nardelli, appointed in August 2007 by Cerberus, and who will soon leave his post. Officially, Fiat had no preference on the use of Chapter 11, despite persistent doubts about the impact of such a procedure on the behaviour of consumers. In April, Chrysler sales still fell by 48, against 34 percent for GM and 32 for Ford. The ex-PDG of GM, Rick Wagoner, who had cited a study by the CNW Research firm in a hearing in Congress, 80 of potential buyers could Shun a constructor under Chapter 11.
In this case, Fiat set the speed of the simplified procedure for assume total management of the company at the earliest and win his daring bet on the viability of Chrysler. "For us, Chapter 11 is the best of solutions: it will allow to sort in the assets and to obtain a lighter company after assignment of some factories and dealer licences", stated, this weekend, at the headquarters of the Italian group, without hiding that Sergio Marchionne is the position of CEO of the "new Chrysler" resized.
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