Cerberus is Tired of Being Tired,
Offers its Entire Stake To Chrysler's Creditors
The big wet THWAP! you hear is the sound of Cerberus throwing in the towel on Chrysler. Even after nominally receiving a federal commitment for $4 billion in bailout funds, Cerberus has offered its "unions debtholders and other stakeholders" its entire 80% stake in Chrysler LLC. This amounts to a tacit admission by Cerberus that Chrysler is effectively bankrupt, and its equity interest is worthless. Daimler came to the same conclusion earlier this year when it wrote down its interest in Chrysler to zero.
The timing of Cerberus's offer, right after the bailout deal might suggest that Cerberus would rather not disclose information on its other operations if it is not going to ever get any money from Chrysler anyway. As with everything else relating to this bailout, things would have been a lot easier if it just would have taken this step a month or two ago.
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