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WaPo: Chrysler BK Would Install Fiat Management

By Anonymous

From the WaPo: Sources: Chrysler Bankruptcy Plan Would Oust CEO, Install Fiat Management

Chrysler chief executive Robert Nardelli would be replaced by the management of Italian automaker Fiat under a bankruptcy plan that the United States is preparing for the storied automaker...

If the bankruptcy proceeds as expected ... The ownership of the new company would be divided between the union's retiree health fund, which would get a 55 percent stake, Fiat, which would get at least a 35 percent stake, and the United States, which would take an 8 percent stake. The Canadian government would receive two percent.

Chrysler's creditors would get $2 billion in cash and no equity stake. The automaker's current owner Cerberus Capital Management would be wiped out.

The deadline is tomorrow.

Full post as published by Calculated Risk on April 29, 2009 (boomark / email).