On Thursday, a group of funds identifying themselves as 20 of Chrysler's "non-TARP lenders" released a statement saying they had been sidelined during negotiations between lenders and the government. The group, which said it holds $1 billion in Chrysler debt, complained that the four banks were "obviously conflicted" because they had accepted money from the government's Troubled Asset Relief Program while they had not gotten TARP money.
The group said its offer to the Treasury Department to reduce its claim to 40 percent was "flatly rejected or ignored."
Yup they did not want to go with that low-ball offer $2.25 billion in cash on their $6.9 billion in secured debt. I mean these guys have the legal rights to get back most of their money if the company goes into Chapter 11 so why shouldn't they take this deal? I mean they have shareholders who they have a fiduciary responsibility to. They should not have to take a low-ball offer and lose millions in principal.In any case, the company is irreparably damaged and is now owned by like 5 different parties including the UAW. If I was Fiat I would walk away from the deal because you might end up with Darth Vader as a business partner. Whenever I think of any company involved with government money or ownership I hear this line from Empire: "I have altered the deal, pray I don't alter it any further."
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