Getting your player ready...
DETROIT — Banks and hedge funds that hold $6.9 billion in Chrysler LLC debt have proposed forgiving $2.5 billion of it in exchange for about a 40 percent stake in a Chrysler- Fiat alliance, said two people briefed on the proposal.
One of the people said the lenders delivered their counterproposal to Chrysler and the Treasury Department late Monday night. Neither person wanted to be identified because the negotiations are private.
The lenders also want Fiat to invest $1 billion cash in Chrysler, and they want to appoint one person to the company’s board, according to term sheets obtained by The Associated Press.
