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Per Automotive News website:
General Motors and Canadian auto parts group Magna International Inc. have reached an agreement in principle that could rescue ailing German carmaker Opel, sources close to the negotiations said today.
The two sides have been trying to agree on a memorandum of understanding that would serve as the basis for bridge financing of 1.5 billion euros ($2.10 billion) as well as a trustee solution that would protect Opel from creditors in case parent GM files for Chapter 11 in U.S. bankruptcy court.
"A framework agreement has been reached. The goal is to work out as many of the details as possible before the meeting with (Chancellor Angela) Merkel in order to sign a memorandum of understanding today," one source with knowledge of the talks told Reuters.
Earlier, Germany raced to overcome a transatlantic spat and growing tensions among Opel bidders to clinch a deal for the German carmaker, as GM hurtled toward bankruptcy.
As the clock ticked down to a Monday restructuring deadline, widely expected to lead to a Chapter 11 filing for GM after it sealed a crucial sweetened deal with bondholders on Thursday, GM's Saab unit was granted more time to restructure by a Swedish court.
[break]
Loss-making Saab, which first sought protection from its creditors in February, was granted an extension until August 20 to line up a new owner and restructure its business.
Swedish business daily Dagens Industri reported late on Thursday that the two front-runners to buy Saab were Swedish luxury carmaker Koenigsegg and U.S. financier Ira Rennert and his Renco Group, with Italy's Fiat in third place.
Saab and GM are due to name a preferred candidate among three remaining unnamed bidders in the coming weeks.
[End]
Looks like FIAT will not be a contender for the GM units, so assume they get Chrysler.
posted by 216.187....
http://www.autonews.com/article/20090529/COPY01/305299946/1193
, Fri, 29 May 2009 15:30:33
, Fri, 29 May 2009 11:29:31, Fri, 29 May 2009 12:01:54, Fri, 29 May 2009 17:00:16, Sat, 30 May 2009 06:07:40
, Fri, 29 May 2009 10:43:51, Fri, 29 May 2009 08:39:26, Fri, 29 May 2009 08:47:04
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