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Cerberus to invest $2B

by David Zatz on

An Associated Press story cites Cerberus as saying it  will invest the first $2 billion in Chrysler Financial profits into Chrysler, LLC, adding to the $4 billion in funding from government loans. However, like the White House, Cerberus will demand that Chrysler labor costs be cut to the same level as foreign transplants – around $10 per hour for existing workers in combined wages and benefits according to some analysts –  and creditors must “restructure” debt. (Restructuring can mean changing payment terms, cutting the amount to be repaid, or both.)

In return for these concessions from workers and creditors, Cerberus said it would provide equity in Chrysler to unions and creditors.

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