Banks ‘in bid for Chrysler stake’

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BBC News reveals that lenders owed billions of dollars by troubled carmaker Chrysler are prepared to swap this debt for a stake in the company.

The banks and investors, owed $7bn (£4.8bn), have offered to write off about $2.5bn in exchange for more than a third of the company, reports say.

The offer was criticised by a US government official for offering “an unjustified return” to the lenders.

Chrysler needs to find new funds quickly to secure its future.

It has already received $4bn in government aid and has until 30 April to come up with a viable plan for its future if it wants to gain further state funding.

On Tuesday, the US government agreed to a further $500m to see the company through until the end of the month. Full story…