In another positive step for Chrysler ’s bankruptcy proceedings, two lenders have withdrawn their opposition to the automaker’s restructuring plans. Oppenheimer Funds and Stairway Capital were two of five lenders opposing Chrysler’s restructuring bid, but both firms withdrew their objections earlier on Friday.
After initially opposing President Obama’s $2 billion deal last month, Oppenheimer Funds and Stairway Capital have finally caved on their hold out stance. Oppenheimer Funds and Stairway Capital were among five lenders opposing Chrysler’s restructuring plans. In all, the five lenders hold $295 million of Chrysler’s $6.9 billion debt, according to the Detroit Free Press.
Both firms said they decided to change their stance after support for the five lenders began to wane. However, Oppenheimer Funds and Stairway Capital don’t necessarily agree with the way the court proceeding are going. Stairway Capital released a statement saying the company is “steadfast in our view that there should be significantly more value attained, given a normal course bankruptcy negotiation. The fact simply is, however, our group has become too small to have a voice within the bankruptcy.”
Barring any major setbacks, the news means Chrysler could be out of bankruptcy by month’s end.
