by Calculated Risk on 4/22/2009 11:16:00 PM
Wednesday, April 22, 2009
Chysler Pier Loan Negotiations
I'm surprised this is playing out in public ...
First the government offered $1.0 billion, and no equity interest in the new Chrysler, to a consortium of debtholders (mostly banks with pier loans: JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup).
The banks countered with $4.5 billion, and a 40% equity interest.
From CNBC: Treasury Raises Offer to Chrysler Lenders
Treasury has offered the lenders $1.5 billion of first-lien debt and a 5 percent equity stake in a restructured Chrysler ...It will be interesting to see if the banks budge (and by how much). They claim they can get more than 65 cents on the dollar in liquidation - or $4.5 billion. Just 7 more days ...