Bus 101- Chrysler Chapter 11 Bankruptcy

Bus 101- Chrysler Chapter 11 Bankruptcy - key stakeholders...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Nicholas Connolly Bus 101 Dr. Barr April 30 th , 2009 Obama Said to Plan for Chrysler Bankruptcy, Alliance In today’s declining market, one of the major industries that are taking the hardest fall is the auto industry. For the last year now, auto companies have been reporting lower and lower earnings while doing whatever the can to stay afloat and out of bankruptcy. Unfortunately for some companies , there is no hope left and even government bailout money would never even safe them. Today, President Obama announced that tomorrow Chrysler would be place into Chapter 11 bankruptcy, which is a form of corporate financial reorganization in which a company's assets get sold off to pay creditors. This will lead them into an alliance with Italian automaker Fiat SpA. If Chrysler went into Chapter 11 bankruptcy, this would affect the owners the greatest amount because they’re financially at risk, making them
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: key stakeholders. Another primary stakeholder would be the employee’s because they would at risk of losing their jobs. Economic and legal are the two perspectives in this case because Chrysler’s owners are at risk of losing their investments in the company. There is a legal perspective because Chrysler is legally obligated to go into bankruptcy by government orders and they are involved in lawsuits with the United Auto workers and Canadian Auto Workers unions. I would address the problem by accepting the Chapter 11 bankruptcy, which would allow my company to become debt free. If Chrysler was debt free, they could potentially work there way back up and become a successful auto company again. Chrysler is in a very tough situation, but becoming debt free by paying their creditors is the best bet for the auto company....
View Full Document

This note was uploaded on 11/15/2011 for the course BUS 101 taught by Professor Rollins during the Fall '08 term at Miami University.

Ask a homework question - tutors are online