|
A message seeking comment was left for Cerberus spokesman Peter Duda.
Former Chrysler executive Wolfgang Bernhard, a senior adviser to Cerberus, is expected to be named chairman of the automaker's board of directors, while Chrysler Chief Executive Tom LaSorda would continue to run the company's day-to-day operations.
Although Bernhard has been seen frequently on Chrysler's headquarters campus in Auburn Hills, Cerberus Chairman John Snow has said Cerberus plans to keep the same management team in place and give it the freedom to implement its restructuring plan.
The closing was sidetracked last month when bankers marketing a $12 billion Chrysler debt sale to major institutional investors ran into turmoil in the mortgage industry that weakened demand for leveraged loans and high-yield debt.
With no investor appetite, seven banks led by JPMorgan Chase & Co. had to keep most of the debt on their books. The banks will front about $10 billion as a loan, while Cerberus and DaimlerChrysler will be on the hook to fund the other $2 billion.
Daimler bought Chrysler in 1998 in a $36 billion deal.
___
On the Net:
Cerberus Capital Management LP: http://www.cerberuscapital.com/
DaimlerChrysler AG: http://www.daimlerchrysler.com/
[Associated Press;
by Dee-Ann Durbin]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed. |
