Wednesday, July 25, 2007

Chrysler Scraps $12 Billion Sale of Loans for Auto Business, Investors Say

(Bloomberg) -- Chrysler abandoned plans to sell
$12 billion of loans to complete its purchase by Cerberus
Capital Management LP after investors balked at purchasing the
high-yield, high-risk debt, according to investors who were
briefed on the decision.

The unit of DaimlerChrysler AG scrapped the sale of loans
linked to its automotive business after failing to find demand,
said the investors, who declined to be named because the terms
aren't public. Banks led by JPMorgan Chase & Co. will assume $10
billion of that debt and Cerberus and DaimlerChrysler agreed to
buy the remaining $2 billion, the investors said.


Read more at Bloomberg Bonds News

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