In the years leading up to the Great Recession, Chrysler was one of the Big Three U.S. automakers confronting strong competitive forces as foreign companies penetrated the U.S. market. Its relatively weak product lineup, significant pension liabilities and a challenging debt burden made it particularly poorly positioned to respond to the sharp decline in auto sales that ultimately occurred in 2008 and 2009.
Around the time of Chrysler’s bankruptcy filing in April 2009, Chilmark was retained to advise the administrative agent for Chrysler’s $6.8 billion senior secured credit facility. We performed a detailed analysis of the lenders’ collateral and evaluated strategic options for each line of business. We then assisted the negotiations with the company and the United States government on the terms of the financing from the Troubled Asset Relief Program.
Chilmark helped to coordinate the various interests within the senior lender group. We provided a wide range of services over the course of our engagement, including:
- Conducting business and industry due diligence
- Evaluating strategic options, including the sale of product lines and brands
- Performing a liquidation analysis of the company’s assets
- Preparing analysis in support of negotiations with the company and the United States Department of Treasury
- Reviewing the Restructuring Plan for Long-Term Viability submitted to the United States Department of the Treasury and Congress
EXPERIENCE – CASE STUDIES