Chrysler Bankruptcy May Take Two Years Says New Report

Chrysler Bankruptcy May Take Two Years Says New Report

From start to finish, Chrysler’s bankruptcy proceedings could take as long as two years, according to a Bloomberg report. The article cites an administration official, and says that the initial period of 30 to 60 days for the “quick and surgical” process only refers to the period required to sell the major assets to a new company.

The remaining “bad assets” would then be divvied up by the courts to the remaining debt holders.

This may not be as big of a setback as it sounds at first, however, as the new Chrysler would no doubt be able to begin operations once it is able, which could turn out to be long before all of the court proceedings have concluded.

Currently Chrysler is still in bankruptcy court and the process does seem to be moving along swiftly as parties opposed to the merger have either withdrawn or been denied. It is not clear how much longer it will take to approve the sale of the “good assets” to the new company owned by Fiat, the UAW and the Canadian and U.S. governments

[Source: AutomotiveNews]


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