Chrysler Financing Delayed, Will It Get Completed?

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Sources from Reuters say that the deal to finance the Cerberus deal to buy 80% of Chrysler from DaimlerChrysler (DCX) has been delayed due to a challenging credit market. It is not clear how long the $12 billion deal will be on hold.

Speculation is that the deal will go through because several banks are committed to fund it. But, if interest rates continue to rise and the credit markets stay choppy, Chrysler’s deal, which involves low-rated debt, could still fall apart.

Douglas A. McIntyre