Automaker Chrysler is a step closer to salvation after it reached agreement with its banks who are agreeing to let go of $6.9bn of debt in exchange of $2 bn of cash. It is not yet completely over for the automaker as some things still need to be ironed out; they could still face bankruptcy.
All 46 banks involved need to ratify the terms, and it isn’t likely that all would, the person said. In that case, a quick, surgical type of bankruptcy may be needed to bring any dissenting banks into an agreement, the person said.
Hmm… On CNBC now, David Faber is reporting that according to sources, the deal (to forgo debt) isn’t quite done yet.