Archive for the ‘Politics’ Category

The sale of Chrysler to Fiat has hit a speed bump, with a group of bondholders petitioning the U.S. Supreme Court to stop the transaction and restore what they say are their lawful rights under the American automaker's bankruptcy petition.

Bloomberg reports that a group of Indiana-based pension funds are suing to stop the close of the Chrysler sale, which could take place as early as tomorrow. The funds have petitioned Justice Ruth Bader Ginsburg to stop the transaction until the Court can decide if it will hear their appeal.

The bondholders argue that the deal to save Chrysler is a misuse of funds from the Troubled Asset Relief Program...

General Motors says Edward E. Whitacre, Jr., will be its new chairman.

The former AT&T chief and ExxonMobil board member will lead newly downsized automaker as it seeks a way out of the government fold when the company is launched later this summer, a GM press release says. Interim chairman Kent Kresa will give up his seat when Whitacre takes over, likely to oversee the sell-off of "old" General Motors assets that remain.

The new General Motors board of directors will include Whitacre and Kresa, and current board members Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis, Jr., E. Neville Isdell and President and Chief Executive...

General Motors filed Chapter 11 bankruptcy on Monday morning in a New York court, after a four-year slide in sales and profits that burned $33.6 billion and led to a government-backed loan that has kept the company in business to date.

The epic bankruptcy filing--the fourth largest in U.S. history-- comes after GM worked in recent weeks to find partners for its Opel/Vauxhall operations, to convince a majority of bondholders to accept diminished returns on their investments and to reach a deal with the United Auto Workers (UAW) on new work, pay and retirement benefits.

The GM filing follows on the heels of the Chrysler bankruptcy filing...