03-10-2009, 11:08 AM
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Administrator
Join Date: Nov 2007
Posts: 14,869
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Chrysler debt sells for as little as 18 cents on the dollar
The Wall Street Journal ran a story indicating that Chrysler's bonds are trading for as little as 15 - 18 cents on the dollar.
The situation for Ford and GM isn't that much better - their debt trades in the 35 - 40 cent range. In January, 2008 Ford and GMs debt was trading for about 90 cents on the dollar. For Chrysler, the bond holders are the only remaining stake holder that has not made a concession as part of the Viability Plan. Chrysler wants to reduce their debt level by having bond holders take stock in exchange for debt. It will be interesting to see if the government offers any inducement to the bond holders, since there's no business case to be made for swapping debt for equity. Here's a link to the WSJ story: http://blogs.wsj.com/autoshow/2009/0...efault-prices/ |
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