Chrysler Chapter 11 Is Imminent – WSJ.com
Creditor Talks Collapse as Hedge Funds Balk at Deal; Fiat Waiting in the Wings
By NEIL KING JR. and JEFFREY MCCRACKENWASHINGTON — Talks between the Treasury Department and lenders aimed at keeping Chrysler LLC out of
bankruptcy broke down Wednesday, making it all but certain the car maker will file for Chapter 11 protection Thursday, according to people familiar with the discussions.
Administration officials, who have been braced for a Chrysler bankruptcy filing for weeks, say all the pieces are in place to get the company through the court quickly, perhaps in a matter of weeks.
The talks with Chrysler’s lenders broke down after the Obama administration’s automotive task force worked into the evening to persuade several hedge funds and other lenders to accept a deal to reduce Chrysler’s debt, said people involved in the talks.
The Treasury boosted its most recent offer to lenders on Wednesday by $250 million to $2.25 billion in cash for the banks and hedge funds to forgive $6.9 billion in Chrysler debt, people familiar with the matter said.
J.P. Morgan Chase & Co., which leads the creditor group as Chrysler’s largest lender, gave the other 45 banks and hedge funds 90 minutes Wednesday to vote on the deal. A large number of the funds voted no and refused to budge, paving the way for an all but unavoidable trip to bankruptcy court, said people close to the talks.
read full article… Chrysler Chapter 11 Is Imminent – WSJ.com.
Related posts:
