Post: Chrysler creditor deal concluded
According to the Washington Post, Chrysler’s creditor group has reached an accord with the Treasury Department which will, coupled with this week’s union deals, prevent bankruptcy. A group of 45 financial firms have agreed to drop their debt demand from $6.9 to $2 billion and around 10% of the company’s equity, shared with the U.S. government. The UAW’s VEBA fund would take a 55% share, in exchange for handling retiree benefits (replacing up to $10 billion in cash), and Fiat would gain 35% of Chrysler. Daimler’s 19.9% stake was given back yesterday; Daimler also agreed to pay $600 million to the pension plan over three years, and to forgive $1.5 billion in loans, presumably in exchange for Cerberus dropping a lawsuit charging Daimler with misleading the private equity firm.
The Post’s story has not been verified. (Thanks, romedog.)
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