Amazing. As we pondered about this morning, it looks like Chrysler (of all companies) has secured its ongoing survival prior to GM (GM)
Washington Post reports that the company has done what GM hasn’t, namely, get its bondholders to take a haircut and accept a restructuring. All told, they’re reducing their debt from $6.9 billion to $2 billion, in exchange for a relatively small slice of the company.
Could it be that unlike with GM, the government was able to make a credible threat that they’d be sent into liquidation in a bankruptcy?
Also, we wonder, might Chrysler have benefitted from the fact that as a Cerberus Portfolio company, there isn’t much fat on the bone to chew off in a bankruptcy.