Chrysler avoids bankruptcy?

This sure has been a goofy story to follow, and the latest twist is that the automaker might stay out of bankruptcy after all. Under a preliminary agreement, banks and other unsecured creditors would excuse about $7 billion in debt in exchange for $2 billion in cash. From the NYT:

The two sides had been far apart in negotiations ahead of a Thursday deadline, but they have significantly narrowed the gap in recent days. The most recent agreement was hammered out late on Monday night as the creditors waited for a response to their most recent proposal submitted on Friday.

Chrysler has reached a deal with the United Auto Workers in which the union would own a 55 percent stake in the newly reorganized automaker.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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