Bankruptcy reality sets in for Chrysler, workers: Automaker warns of likely trouble ahead

[Hannah Bell]

BY JUSTIN HYDE and GREG GARDNER • FREE PRESS STAFF WRITERS • May 2, 2009

The promise of a surgical bankruptcy turned into a gritty reality for Chrysler LLC and its workers Friday, as the company outlined its immediate hurdles and workers dealt with plant closings and -- in some cases -- canceled pension checks.

...In recent weeks, Chrysler held what amounted to a five-day bazaar for Chinese companies, offering to sell engines, transmissions and entire vehicle lines.

As part of its filing, Chrysler named eight U.S. plants that would be closed by 2010 and sold to settle debts of the old Chrysler....Dealers learned Friday that Chrysler Financial, which is independent of Chrysler, no longer would finance their inventories. That work has been turned over to GMAC, also an independent company, as part of the bankruptcy.

About 1,800 Chrysler retirees were shocked to discover that their benefit payments were voided Friday morning...

http://www.freep.com/article/20090502/BUSINESS01/905020361/Bankruptcy+reality+sets+in+for+Chrysler++workers