Monday, December 22, 2008

Chrysler dead man limping

http://www.nytimes.com/2008/12/22/business/22chrysler.html?_r=1

In other words, Cerberus appears willing to give up its 80.1 percent stake in Chrysler to the United Automobile Workers and anyone else the troubled automaker owes money to.

Why would you do this? Cause the liabilities are not worth the risk anymore.

Cerberus officials lobbied the White House last week to prevent the private equity firm from being held responsible for the Chrysler loans if the automaker cannot repay them, according to people with knowledge of the talks who declined to be identified because the discussions were private.

But Chrysler executives, who are responsible for the day-to-day operations of the company, were shut out of the discussions, those people said.

Whoops looks like someone has a hot potato

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