Chrysler/GM Bankruptcy Quick Update - Essentially Stay Tuned
In case you're wondering what's happened to Chrysler, the answer is: we don't know yet. Here's a good Q&A prepared by AP about the whole Chrysler/GM mess that are very helpful in understanding what's happening . And here's a bit more slanted analytical approach to what's going on.
CHRYSLER
Some early news reports suggest that Chrysler's got in the bag as far as getting approval of its so-called 363 sale (if we were really paying any attention to the Bankruptcy Code, there's no possible way this involved a plan of action would qualify as a 363 sale, but at least in this case, this may be water over the dam by now). However we're now in Day Two of the hearing on the Sale Motion and expected to go late (which by the way is something I've always admired about bankruptcy judges - they are always ready to conduct hearings into well into the evening if the situation merits it... and it doesn't have to be a Chrysler or GM case for them to do it.)
For summaries of what's been going on with the Chrysler hearing , click here and here)
Some reports have the judge overruling everything as early as tonight (Thursday), but i don't really see that. At this point, it does appear likely that any ruling approving the sale would be immeidately appealed. So while the judge undoubtedly has a goodly portion of his desicion already written (there's probably two versions, one approving the sale and the other denying it), I'd expect him to wait at least until morning. Plus I'm not convninced the hearing won't go into Friday anyway. And notwithstanding all the hue and cry from Chrysler and its attorneys that TIME IS OF THE VERY ESSENCE and every moment 's delay is excruciatingly harmful, seems like Judge Gonzalex would want to be seen as really considering all the testimony he's heard. All of which suggests to me a weekend relase or possibly even a Monday morning release of his decision and opinion.
GM
As far as GM, documents submitted to the SEC and news reports (also click here) suggest that its Chapter 11 filing won't come until Monday, but that GM may have made some headway with the bondholders..
For more on where things stand for GM, click here and here. GM seems to have been making a number of very sensible preparations lately for a company contemplating bankruptcy - it almost seems like they actually do have an overall plan which includes not just a strategy, but also the tactics to get there.
Lots could happen with GM in the next 72 hours or so. Whatever news reports you see or read or likely to be behind almost as soon as you see or hear them
But here's my very quick update on where things are on this. SO it's looking like MONDAY could be a VERY BIG DAY in all of this.
