The US Treasury, ahead of the April 30 deadline for negotiations with Fiat, responded to Chrysler’s secured creditors, offering 5% ownership in a restructured Chrysler-Fiat partnership in exchange for slashing the principal on their $6.9 billion in loans to $1.5 billion.
The new offer comes after creditors, led by J.P. Morgan Chase, Morgan Stanley, Goldman Sachs, Citicorp and four hedge funds, asked to cut the debt to 4.9 billion in exchange for a 40 percent stake.
The Treasury early in April first proposed lenders to cut the debt to one billion dollars with no stake in exchange.
Chrysler has continued to work thatks to a 4 billion dollar emergency loan by the government.
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