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Old 11-30-2008, 12:34 PM   #1
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Default Daimler and Cerberus start $7bn row

Daimler and Cerberus appear to be headed for a protracted legal dispute after the private equity firm launched an audacious bid demanding more than $7bn from the carmaker over losses that followed its 2007 acquisition. Cerberus has accused the German carmaker of knowingly selling a damaged asset last year.

The private equity firm insists that Daimler breached the terms of a $7.2 billion deal to sell 80.1 percent of the business in August 2007.

The claim amounts to more than the value of the 2007 acquisition and has been dismissed as baseless by Daimler.
In a statement the equity firm said that Daimler had made "extraordinary changes" to its underwriting standards for vehicle leases and financing between February and August 2007 when the deal to sell Chrysler closed.

Cerberus said those changes would have boosted sales of Chrysler, Jeep and Dodge vehicles but at the cost of shifting risk to the balance sheet of Chrysler and its financing arm.
It added that Daimler had "intentionally and materially breached its obligations" under the Chrysler deal in other ways but did not elaborate further.
Cerberus is said to be interested in buying the remaining share of Chrysler from Daimler.

It is currently seeking $7bn in emergency federal aid for Chrysler and must submit plans to the US Congress on how it will restructure the business to make it more viable.
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Old 11-30-2008, 01:13 PM   #2
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O give me a break. Cerberus really didn't know Chrysler was a damaged asset???

On the extraordinary changes in the underwriting part...will have to wait and see.
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Old 11-30-2008, 02:11 PM   #3
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So Daimler made changes between February and August, correct? cerberus bought in August, Correct?

Good luck jackasses, Chrysler was going down the tubes and you bet on the wrong horse.
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Old 12-01-2008, 06:54 PM   #4
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I'm just glad they're not managing my capital.
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Old 12-04-2008, 02:07 PM   #5
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Man, Corker from Tennessee is raking them over the coals in the Senate hearings today. Stated they wouldn't even be there if it wasn't for the clout that GM has. He is not wanting to give any money because Ceberus is refusing to infuse any more cash themselves. And he is not being kind at all.
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