About a month ago, President Barack Obama demanded what analysts in the financial and automotive communities believed to be the impossible.
He asked Chrysler LLC to require additional concessions from the United Auto Workers, negotiate billions in debt relief from 46 banks and hedge funds, and forge a partnership with Italian automaker Fiat.
And the president asked that Chrysler get it all done within weeks. That or face bankruptcy and, perhaps, liquidation.
But Wednesday, UAW Locals 685 and 1166 joined others across the country and ratified an agreement that nixes Christmas bonuses, shortens vacations, eliminates tuition assistance, reduces worker compensation, among other concessions.
Chrysler’s largest bondholders agreed to cents on the dollar. An arrangement was made with Fiat. It looked as though Kokomo’s largest employer would avoid bankruptcy.
It didn’t, the president announced Thursday. Three lenders – Oppenheimer Funds, Perella Weinberg Partners and Stairway Capital, the Detroit Free Press reported – refused to accept their proposed share of cash for debt.
“[I]t was unacceptable to let a small group of speculators endanger Chrysler’s future by refusing to sacrifice like everyone else,” Obama said.
So the president supported Chrysler’s bankruptcy. He said, “It will not disrupt the lives of the people who work at Chrysler or live in communities that depend on it.”
He offered Chrysler $3.5 billion in financing to keep it operating while in bankruptcy, and another $4.7 billion once it re-emerges as Chrysler-Fiat in 30 to 60 days.
In the years to come, Thursday’s announcement might be considered a watershed moment for Chrysler and Kokomo – much like Haynes International’s bankruptcy in 2004.
The Kokomo-based producer of high-performance alloys, which started as Haynes Stellite Works in 1912, emerged from Chapter 11 bankruptcy after little more than five months stronger than before.
Chrysler is positioned to do the same.
Opinion
‘The hard path is the right one’
- Opinion
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White shouldn’t return to office
The issue: The conviction of Indiana’s secretary of state.
Our view: Charlie White’s ouster from office should be permanent.
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Editorial - Feb. 8, 2012: Grand success for Indianapolis
The issue: The Super Bowl.
Our view: Indianapolis left a great impression on thousands of visitors.
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Letters to the Editor: Feb. 8, 2012
As Hoosiers celebrate the conclusion of a truly remarkable Super Bowl experience, there is even more good news that should fill us with pride. More Indiana students are graduating from high school than ever before.
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Which religions will we include?
The Indiana Senate last week approved a bill that would allow public schools to teach creationism, as long as they include theories from multiple religions.
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If you say so
In an opinion piece we published Thursday, state Rep. Mike Karickhoff announced why he voted against “right-to-work” legislation. His reason: The community told him to.
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Cheers and jeers - Saturday, Feb. 4, 2012
Karickhoff acted ‘cowardly’
The Rev. Robin Wentworth Mayer and Horst G. Mayer of Kokomo send the Jeer for state Rep. Mike Karickhoff’s silence during the “right-to-work” debate:
“Mr. Karickhoff, for someone who’s new to office, you’ve certainly learned the art of talking out of both sides of your mouth.
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Let’s drug test our lawmakers
Perhaps it’s appropriate that a measure passed by the Indiana House this week would ask not only welfare recipients but Indiana lawmakers to consent to a drug test.
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Editorial - Feb. 2, 2012: Peru delivers a message
The issue: Peru’s collection of $20,000 last year from property owners who failed to keep their yards mowed.
Our view: Aggressive enforcement can help a city’s finances, but the benefits go beyond dollars and cents.
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Karickhoff: Reason behind my ‘right-to-work’ vote
There is no doubt the “right-to-work” debate has brought mixed emotions, not only to our state but District 30 as well. There were only a handful of House Republicans who did not vote in support of this legislation. Let me explain why I felt it was necessary for me to vote in opposition to right to work.
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Heinig: ‘Right-to-work’ law to arouse continued resistance
I wouldn’t call Gov. Mitch Daniels a charismatic leader, but he does possess some leadership skills. If he didn’t, he couldn’t have brought us this far along the happy trail to his economic Valhalla.
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White shouldn’t return to office








