A New Pileup in the Auto Sector?

Bankers pony up to finance the Chrysler acquisition, but a drop in demand could undermine future industry restructuring

The financing deal that will put Chrysler into the hands of private equity firm Cerberus Capital Management hit a speed-bump Wednesday. Bond buyers who were expected to belly up to buy the debt that would finance the buyout, left some $10 billion in bonds on the shelf. While disappointing, it won't be enough to derail the deal, say the executives running the transaction.

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