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AutoBlog: Chrysler's dissident lender group withdraws objections

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Filed under: Government/Legal, Chrysler, LLC., Earnings/Financials


There was a minority group of some 20 Chrysler lenders that were fighting the repayment arrangements Chrysler was trying to make before Chrysler declared bankruptcy. Led by Oppenheimer and Stairway Capital, they were owed $2.9 billion and didn't feel they were getting all they could. After Chrysler declared bankruptcy the group continued to fight the repayment arrangements, saying they were owed more remuneration as holders of secured debt.

Well, last week was sound and fury, this week it's in with a bang and out with a whimper. After the bankruptcy judged instructed the group to disclose all of its members, around 15 pulled out. They apparently were hedge funds who shun the limelight. That left five debtholders owed $295 million, until Oppenheimer and Stairway pulled out. That left just three parties, a lawyer for whom admitted, "It reached a point where we didn't have a significant enough group, and it wasn't sensible to proceed."

This removes one of the last obstructions to Chrysler's precision bankruptcy and tie-up with Fiat. Now it's on to dealers and suppliers, and that little issue of product line-up.

[source: Automotive News - Sub. Req.]

Chrysler's dissident lender group withdraws objections originally appeared on Autoblog on Fri, 08 May 2009 18:31:00 EST. Please see our terms for use of feeds.

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