?Creditors want 40% stake in Chrysler/Fiat alliance? (bankruptcy, debt, companies)

[Dexterguy]

I'm actually getting a little confused now, if Chrysler's debt holders want 40% stake in the company for wiping out $2.5 billion in debt off their slate, then what about the other companies that have stake in the company right now and in the future.

80.1% Cerberus Management - could be 45% soon

19.1% Daimler AG - could be none soon (maybe)

20-35% FIAT s.p.a. - if alliance happens??

40% Banks: JPMorganChase, Citigroup, Morgan Stanley

HOW CAN ALL OF THESE COMPANIES HAVE THIS MUCH STAKE IN A COMPANY THAT IS ALMOST WORTH NOTHING TODAY!

Know wonder this company is in such bad shape it's owned by tons of people...

[renter8319]

true that. too many cooks in the kitchen...sorta

[HappyTexan]

Say..the US Government needs to be in that lineup..they are a "debt holder" unless we plan to write all that money off.

[ajeleonard]

Originally Posted by Dexterguy

Know wonder this company is in such bad shape it's owned by tons of people...

Wow, sometimes I despair. So I guess every publicly traded company with millions of shareholders must be in even worse shape by your "logic"

[cdelena]

You have to look at the type of debt... if you are holding debt that is legally first in line during a bankruptcy it would be stupid to take a poor settlement when you would get a better return with a liquidation. Shareholders are at the bottom of the sequence and stand a good chance of losing everything.

[Ira500]

HOW CAN ALL OF THESE COMPANIES HAVE THIS MUCH STAKE IN A COMPANY THAT IS ALMOST WORTH NOTHING TODAY!

What was the old song:" Nothing from nothing leaves nothing?"

I wish Chrysler well, and who knows, maybe they'll do fine, but when Fiat cars were imported to the US years ago, they weren't called " Fix It Again Tony" for nothing.