New York – Chrysler Group was busy on Tuesday planning a massive celebration to mark the automaker’s imminent return to American-controlled hands, but Wall Street banks put in charge of raising a $62 billion turnaround package faced increased scrutiny from investors.
Cerberus Capital Management will in the coming days close its $7.4 billion acquisition of the automaker from DaimlerChrysler AG, ending nine years of ownership by the German company. At Chrysler’s headquarters in Auburn Hills, Mich., the Daimler name is being removed from buildings and wiped from stationery.
But, what is still far from certain is investor appetite for the massive funding package used to refinance Chrysler debt and recapitalize the company. Investors have balked at the upcoming pricing of $12 billion of debt for the Chrysler deal, according to people familiar with the transaction who were not authorized to speak on the record.
