Chrysler is busily working on a revised viability plan to submit to the Obama administration by April 30th, but an issue with Chrysler’s banks and lenders has brought all progress to a standstill. Chrysler’s lenders – which hold $6.9 billion of debt with the automaker — rejected Chrysler’s proposed plan for restructuring and are currently writing a counter offer.
According to the Associated Press, Chrysler’s original proposal offered lenders 15 cents on the dollar, or roughly $1 billion to erase its $6.9 billion of debt. That offer was viewed as unacceptable, with lenders now drafting a new proposal.
Although it remains to be seen how much Chrysler’s lenders will seek, the counteroffer will likely include a stake in the Dearborn-based company. Equity in Chrysler would ensure a profitable return should Chrysler successful form an alliance with Italy’s Fiat.
A decision on the counter offer is expected fairly quickly as the Obama administration’s April 30th deadline is quickly approaching. But with lenders now interested in taking part ownership of Chrysler, it sounds as if a deal with Fiat is more likely than ever.
04/14, 5:21 PM
posted by:
JakeK66
Wouldn’t it be funny if the lenders to Chrysler were Cerebus owned and all they were doing is arguing with themselves?
04/14, 5:38 PM
posted by:
johnnycanuck
So many parties are going to end up having a slice of Chrysler that they should change the name to Pizza Corporation.
04/14, 5:48 PM
posted by:
shane train
Jake- Most American automakers already compete with their own models, so I wouldn’t be entirely surprised.
04/14, 5:54 PM
posted by:
The Stig
Chrysler = LOL
04/15, 9:14 AM
posted by:
ricky_b
If Fiat wants to make it in America, they should just wait a few more months and buy Chrysler’s plants and dealer network at the fire sale.
04/16, 4:33 AM
posted by:
SomeGreek
You are sooo right ricky_b…