OppenheimerFunds, one of Chrysler
LLC's dissident secured lenders, said on Friday it has decided
to withdraw its opposition to the automaker's proposed debt
restructuring plan as it no longer expects to increase its
OppenheimerFunds was among the group of holdout creditors
that own a combined $295 million of the automaker's $6.9 billion
in distressed debt and which rejected a deal that offered them
only 29 cents on the dollar.
About 20 senior lenders, led by OppenheimerFunds and
Stairway Capital, had also sought to block Chrysler's plans for
a sale of its best assets into a new company owned by its union,
Fiat and the government.
Given the reduced number of senior creditors willing to
continue to pursue an alternative to the federal automotive task
force's proposed settlement, OppenheimerFunds has determined
that the senior creditors can no longer reasonably expect to
increase the recovery rate on the debt they hold by opposing the
task force's restructuring plan, it said in a statement.
The fund said it was now willing to adhere to the
determinations of a U.S. Bankruptcy Court.
President Barack Obama called the dissenters speculators
in public criticism for refusing to join Chrysler's biggest
banks in a government-brokered deal to wipe out Chrysler's $6.9
billion debt and move forward with the Fiat alliance.
More than half of the parties that had opposed Chrysler's
plan have already dropped out of the group as public and
political pressure grows to restructure the automaker quickly.