A group of Chrysler lenders that opposed the government’s restructuring plan for the auto maker has been forced to disband after two of its five members backed out, people familiar with the matter told the Wall Street Journal (WSJ).
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OppenheimerFunds and Stairway Capital withdrew on Friday from the group of “non-TARP lenders” to Chrysler and said they would accept the outcome of the automaker’s bankruptcy court proceedings, the paper said.
The remaining three firms, Schultze Asset Management, Group G Capital Partners and Foxhill Capital Partners, have insufficient resources to cover legal fees, one person told the WSJ. They remain unwilling to consent to a government plan that would pay Chrysler’s secured lenders around 33 cents for each dollar in debt they own, one person said.
As holdouts to the government-brokered bankruptcy, the creditors were vilified by President Barack Obama, who called them a group of “speculators,” whose decisions “endanger Chrysler’s future.”
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