Most Chrysler creditors accept Treasury plan
The majority of Chrysler’s secured creditors have agreed to a deal with the U.S. Treasury, a move that bolsters the automaker’s hopes for a quick passage through bankruptcy. In all, more than 100 funds agreed to the plan.
The group will swap $6.9 billion in first-tier secured debt for $2 billion in cash. That’s $250 million less than was offered before Chrysler filed for bankruptcy protection.
As demanded by Judge Arthur Gonzalez, a group of smaller creditors, holding about $295 million in Chrysler debt, identified themselves in court. As reported earlier by Allpar, they include Foxhill Opportunity Master Fund, Oppenheimer Senior Floating Rate Fund and Stairway Capital Management. Other lenders, who had been part of the group, elected to withdraw, citing publicity concerns.
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