AP Sources: US asks Chrysler lenders to forgive $5.4B in debt in return for 5 percent stakeNEW YORK — The Treasury Department has made a new offer to Chrysler LLC’s lenders, asking banks and hedge funds that hold $6.9 billion in debt to forgive $5.4 billion and take a 5 percent stake in a Chrysler-Fiat alliance, according to two people familiar with the matter. AP Source: US asks Chrysler lenders to forgive $5.4B in debt in return for 5 percent stakeNEW YORK — A person familiar with the matter says the Treasury Department has made a new offer to Chrysler LLC’s creditors. Treasury offers Chrysler lenders $1.5 billion plus 5 percent equity stake, says WSJLOS ANGELES — The Treasury Department lobbed back a new offer to Chrysler LLC’s lenders, proposing that banks and hedge funds which hold $6.9 billion in debt forgive $5.4 billion in exchange for a 5 percent stake in a Chrysler-Fiat alliance, media reports said late Wednesday. Lenders offer to swap $2.5B of Chrysler’s debt for equity, but won’t give up all they’re owedDETROIT — Banks and hedge funds that hold $6.9 billion in Chrysler LLC debt have proposed forgiving $2.5 billion of it in exchange for about a 40 percent stake a Chrysler-Fiat alliance, according to two people briefed on the proposal. |
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