The Business Insider has this article up on the Chrysler Chapter 11 bankruptcy.
If you refuse to honor the debt, or deal with the debt in accordance to prevailing laws, how will you ever be able to borrow money? Who will be willing to lend? That's just what is going on with the auto industry bailouts. Got a union shop? Sorry, have fun attracting bondholders.
However, one of the overlooked pieces of the Chrysler puzzle is how to handle the dealers. There are too many, and there are contractual obligations to the dealers if Chrysler wishes to close them. The bankruptcy should clear some of those obligations.
And I'm afraid a friend of mine who owns a Chrysler dealership, and his employees, will be negatively impacted.
Friday, May 1, 2009
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