Chrysler dissident lenders lose fight and disband

Reuters is reporting that the dissident Chrysler lender group has disbanded. Apparently, the lenders have finally figured out that they have zero chance of getting what they want as I have been saying all along (see posts here and here).  Let’s see what is in store at General Motors now.

A group of Chrysler LLC’s dissident lenders disbanded, representatives said on Friday, removing the last legal hurdle to the embattled automaker’s quest to complete a merger with Italy’s Fiat SpA with U.S. government backing.

"After a great deal of soul-searching and quite frankly agony, Chrysler’s Non-TARP lenders concluded they just don’t have the critical mass to withstand the enormous pressure and machinery of the US government," said Tom Lauria, the White & Case attorney representing the group.

But Lauria said the group did not intend to agree to the proposal to exchange their debt for 29 cents on the dollar.

Good luck with that.

Source

Chrysler dissident lender group disbands – Reuters