WKYT | Lexington, Kentucky | News

Source: Chrysler Lender Talks Break Off

DETROIT (AP) - Talks between Chrysler's lenders and the Treasury
Department to reduce the automaker's $6.9 billion in secured debt
and keep it out of bankruptcy protection have disintegrated
That's according to a person familiar with the talks.
The company's fate was in the hands of about 40 hedge funds that
hold about 30 percent of its debt. Although four banks holding 70
percent of the debt had agreed to erase it for $2 billion, the
hedge funds were holding out for a better deal.
After allowing talks to continue late into the night Wednesday,
Treasury finally ended negotiations after the hedge funds were
unable to come to an agreement.
The deal's failure means Chrysler will seek bankruptcy
protection unless something can be worked out before the
government's 11:59 p.m. EDT deadline.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus

WKYT

2851 Winchester Rd. Lexington, Ky 40509 859-299-0411 - switchboard 859-299-2727 - newsroom
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 44046042