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’Snap news
Breaking pre-market news on Friday,
- EU, IMF wind-up Greek review – Bloomberg.
- US Treasury to sell remaining stake in Chrysler to Fiat – Reuters.
- Corporate: Cairn Energy, Scotty Group, Halfords,
‘Cash-for-clunkers’ boosts US car sales
Car sales in the US surged by about 16% last month compared with June thanks to demand generated by car scrappage incentives. But year-on-year sales remained lower for most carmakers. GM and Chrysler, which have emerged from court-supervised restructurings,
Fiat seals deal with Chrysler
Fiat and Chrysler on Wednesday finalised a global strategic partnership that they said would start operations “immediately”. The alliance focuses on a “new Chrysler” comprising most of the bankrupt carmaker’s assets;
Court revives Chrysler deal with Fiat
The US Supreme Court on Tuesday allowed the sale of Chrysler to Fiat to go ahead, rejecting an appeal by three Indiana pension funds – which hold $42m of Chrysler’s $6.9bn in secured debt – to suspend the deal,
Supreme Court delays Chrysler sale
Chrysler suffered a last-minute setback to its hopes of speedy restructuring on Monday after the US Supreme Court delayed the sale of the bankrupt carmaker to a group led by Italy’s Fiat. The court halted
Chrysler investors try to stop Fiat deal
A group of investors in Chrysler has made a last-ditch effort to block an alliance between the troubled carmaker and Fiat. A US appeals court on Friday approved the sale of most of Chrysler’s assets to Fiat,
‘Lean’ Chrysler set to emerge
A slimmed-down Chrysler is set to emerge from bankruptcy this week as the automaker’s board prepares to appoint Fiat’s chief Sergio Marchionne to the helm. US president Barack Obama praised the carmaker’s “quick,
Handy bankruptcy fees calculator
Never know, might come in useful.
Courtesy of LoPucki-Doherty.
Alternatively, check out the model for estimating Chapter 11 fees constructed by Stephen Lubben of Seton Hall University.
H/T Credit Slips
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Funds move to halt Chrysler restructuring
Three of Chrysler’s secured creditors are mounting a fresh attempt to thwart the carmaker’s Chapter 11 reorganisation, arguing it violates their legal rights and US government authority under the TARP scheme.
Chrysler rebels owed just $295m
Dissident creditors trying to block the reorganisation of Chrysler are a small group of investors that are owed just $295m, court documents show. Some members of the group have tried to remain anonymous after being criticised by the Obama administration.
Debt holders move against Chrysler
A New York bankruptcy court will hear arguments on Tuesday by a group of Chrysler lenders seeking to block the carmaker’s restructuring on the grounds that the process is “patently illegal”. The dissident group,
Fiat expansion hits obstacles
Fiat’s plan to build a European car group with Chrysler and GM’s German unit, Opel, ran into obstacles on Monday as Berlin issued a string of conditions for any Opel buyer, and dissident Chrysler creditors said a sale to Fiat would be “patently illegal”.
Chrysler files for Chapter 11
Chrysler filed for Chapter 11 bankruptcy protection on Thursday after hedge funds blocked a restructuring of the US carmaker’s $6.9bn debt. Chrysler will emerge from a “surgical” bankruptcy process with more government aid and new shareholders,
Obama hits at hedge funds over Chrysler
President Barack Obama criticised hedge funds for blocking an out-of-court restructuring of Chrysler’s $6.9bn debt. While praising JPMorgan Chase and other large banks for accepting the terms of the carmaker’s restructuring proposal,
Chrysler teeters on the brink
Chrysler slid on Wednesday to the brink of bankruptcy as it negotiated with debtholders and the US government ahead of Thursday’s government-set deadline for a restructuring plan. People involved in talks between Chrysler and the government said there was a chance Chrysler could avoid bankruptcy.
Chrysler’s lenders agree concessions
The Obama administration on Tuesday extracted deep concessions from holders of Chrysler’s $6.9bn debt, buying time for the troubled carmarker. The four principal lenders, which hold about 70% of the debt,
Chrysler, UAW agree deal
The United Automobile Workers union said Sunday it had reached an agreement with Chrysler that meets the US government’s criteria for the automaker to receive more financing, reports the NYT. The deal also brings Chrysler closer to prospects of an alliance with Italy’s Fiat ahead of Friday’s deadline.
Fiat pursues GM Europe stake
Fiat on Thursday signalled its interest in taking a stake in GM’s European business as it rushes to agree an alliance with GM’s rival, Chrysler. The Italian carmaker is among up to seven contenders for a stake in GM Europe,
Chrysler creditors reject debt demand
Chrysler’s creditors, led by JPMorgan Chase and Citigroup, on Tuesday rebuffed a US government request to forgive the bulk of their debt holdings, a move that will prolong the stand-off over the carmaker’s future.
Fiat chief eyes Chrysler top job
Sergio Marchionne, Fiat’s chief executive officer, signalled for the first time on Wednesday his willingness to run troubled US carmaker Chrysler. But Marchionne also said he was prepared to scrap a partnership on which Chrysler’s survival rides if it failed to win needed cost cuts from its unions.
Fresh flight from risk hits global equities
Global equities tumbled on Monday after GM and Chrysler were refused fresh US government bail-out funds and Spain launched its first banking bail-out of the current financial crisis, providing up to €9bn ($11.9bn) to savings and loan CCM.
Obama gets tough on carmakers
The Obama administration on Monday stepped up the government’s involvement in the US auto industry and raised the spectre of bankruptcy after President Barack Obama rejected the turnround plans presented by GM and Chrysler last month.
CDS update: Another poor run for banks
This CDS report was written by Markit’s Gavan Nolan
The credit and equity market moved in unison today, with European indices in both asset classes about 4-6% off Friday’s close. The Markit iTraxx Europe index closed at 172bp,
US refuses fresh funding for GM, Chrysler
By Tom Braithwaite in Washington
The Obama administration refused on Sunday night to give fresh bailout money to General Motors and Chrysler, telling the carmakers to come up with new plans or risk insolvency.
US to announce aid for carmakers
US president Barack Obama is expected to say on Monday that GM and Chrysler will receive extra government support on top of the combined $17.4bn they have already received if they fulfil certain conditions.
Fiat, Chrysler, wait to close deal
The boards of Chrysler and Fiat have given executives approval to complete an alliance deal that now hinges on the terms of extra aid for the struggling US automaker, reports Reuters. The news comes ahead of a Monday announcement by US President Barack Obama on auto industry aid,
US automakers to seek $21.6bn in funds
General Motors and Chrysler presented long-awaited restructuring plans on Tuesday, but said they would need up to $21.6bn more in federal funds between them to carry them out. The two Detroit carmakers made the plea as part of tougher new downsizing plans in submissions to the government required as a condition of the $17.4bn of emergency bridge loans they received in December.
Chrysler faces equity carve-up
Chrysler’s restructuring plan could see the combined equity of owners Cerberus and Daimler shrink to less than 10%, with the rest of the company divided between the US government, the United Auto Workers’ union,
Chrysler hopes Fiat to boost aid bid
Chrysler declared its new alliance with Fiat would enhance its long-term viability in an apparent bid by the Detroit carmaker to strengthen its case for billions of extra dollars in US government aid. The partnership,