Thursday, April 23, 2009

Government Raises Offer to Chrysler Lenders

With just over a week left until the April 30 deadline, late on Wednesday the government raised its offer to Chrysler's lenders. The new offer: $1.5 billion in first lien debt and 5% of the company. This is a counter to the lenders' demand of $4.5 billion in first lien debt and 40% of the company. I predict the government will have to double this offer and add a little more to get a deal done. My prediction: if a deal is going to get done, it will get done at $3 to $3.5 billion in cash equivalents and up to 10% of the company.

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