Three funds hold out in Chrysler debt deal-sources
DETROIT, April 29 |
DETROIT, April 29 (Reuters) - Three fund management companies which hold Chrysler LLC's secured debt were holding out against the proposed terms in the automaker's debt restructuring talks as of Wednesday afternoon, two people briefed on the closed-door negotiations said.
The three creditors unprepared to accept the U.S. Treasury's offer of $2 billion in cash to extinguish $6.9 billion in secured debt were Oppenheimer Funds, Perella Weinberg Partners and Stairway Capital, the sources said.
Representatives of the three institutions could not be immediately reached for comment.
Chrysler's lenders and U.S. officials were meeting Wednesday afternoon and expected to continue discussions in a bid to win wider support for the government's debt offer, the people briefed on the matter said.
Chrysler's main bank lenders -- JPMorgan Chase & Co (JPM.N), Goldman Sachs Group Inc (GS.N), Morgan Stanley (MS.N) and Citigroup Inc (C.N) -- have agreed to the Treasury's offer.
About 45 financial institutions hold Chrysler's secured debt and failure to win their support would send the automaker into bankruptcy, officials have said.
(Reporting by Poornima Gupta, Jui Chakravorty and John Crawley; Editing by Phil Berlowitz)
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