‘The hard path is the right one’

Opinion

Discussion

April 30, 2009

Anonymous The Kokomo Tribune Thu Apr 30, 2009, 05:59 PM EDT

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.

Text Only | Photo Reprints

Opinion

Forever thankful
Monday is Memorial Day, a national holiday to remember those who have died while serving our country.

Memorial Day officially

May 26, 2012
Cheers and Jeers - Saturday, May 26, 2012
Thanks for your kindness

Terry Siegrist, a paralegal in Salina, Kan., sends this Cheer:

“The family of the late Esther Sprinkle wishes to send our heartfelt thanks to all who gave so generously of their kindness and sympathy in the death of our beloved mother and grandmother. We especially want to thank those who visited us at the funeral home and sent flowers, cards, memorials or food.

May 25, 2012
USPS scales back plans
The issue: Postal Service plans to keep smaller post offices open.

Our view: Agency deserves credit for listening to the concerns of customers.

May 25, 2012
Sign change is overdue
A colleague of ours years ago said Indiana lawmakers should change the state motto to “We’ll Get Around to It.” His observation is both funny and sad.

May 23, 2012 1 Story
Tips on flag etiquette
Monday is Memorial Day – set aside to honor those Americans who gave their lives in this nation’s wars. Lots of folks fly the flag every day as a show of patriotism, but what many might not know is that there are specific rules outlined in the U.S. Flag Code concerning its display.

May 21, 2012
Cheers & Jeers - Saturday, May 19, 2012
Carriers collect 19 tons of food

Brian S. Kidwell of Branch 533 of the letter carriers union sends this Cheer:

May 19, 2012
Walk a lap, fight cancer
Before you read any farther, stop for a second and think about what this one word means to you: cancer.

May 18, 2012
Program eyes troubled kids
If you know a teenager who has gotten off track, Elissa Andersen might be just the person to call.

May 16, 2012
Editorial - May 15, 2012: Hard work still pays
The issue: The Class of 2012.

Our view: Congratulations on your achievement, graduating high school seniors, and remember to thank those who helped you along the way to success.

May 15, 2012
de la Bastide: Indiana, the nation lose true statesman
During his 36 years in the U.S. Senate, Richard Lugar was noted for his ability to compro-mise when it came to legislation impacting the nation, and as a statesman when it came to foreign policy issues.

May 15, 2012
More Opinion Headlines

Opinion

Search Results

Discussion

‘The hard path is the right one’

Site Map

Contact Us