- The Washington Times - Tuesday, April 14, 2009

DETROIT (AP) - A person briefed on the negotiations says banks and other lenders that hold $6.9 billion in Chrysler LLC debt will soon make a counteroffer to the government and Chrysler that likely will include an equity stake in the automaker.

The person says the government initially proposed that the lenders take roughly $1 billion in exchange for wiping out the debt, which the lenders rejected. The person didn’t want to be identified because the talks are secret.

Chrysler is living on $4 billion in federal aid, and the government has given it until April 30 to sign a partnership deal with Fiat Group SpA or face liquidation. Chrysler also must win concessions from debtholders and unions.

Copyright © 2018 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide