by Calculated Risk on 4/28/2009 12:23:00 PM

From the NY Times: Deal Is Set on Chrysler Debt That May Avert Bankruptcy

The Treasury Department has worked out a preliminary agreement with Chrysler’s largest secured creditors ...

Chrysler has about $6.9 billion in secured debt owned by big banks such as Citigroup and JPMorgan Chase and a group of hedge funds. Under the proposal, all of the debt would be canceled in exchange for $2 billion in cash...

The initial Treasury offer was $1.0 billion, and the banks countered at $4.5 billion and 40% equity in the new Chrysler. These is no mention of equity in the story.