Negotiating With Pirates

| Wed Apr. 22, 2009 10:27 PM PDT

Treasury's last offer to Chrysler's bondholders was 15% of the total value of their debt.  The bondholders sneered.  They wanted 65%.  Today, Treasury upped their offer:

The Treasury now proposes that the banks and other lenders accept as payment 22% of the $6.9 billion they are owed plus a 5% equity stake in Chrysler, said several people familiar with the matter.

....The new government offer leaves the U.S. and Chrysler lenders at least $3 billion apart with one week left before an April 30 Treasury deadline to determine the auto maker's fate. The two sides are also far apart in how big an ownership stake the lenders would get in a restructured Chrysler.

Who will blink?  I'll predict that they end up at, oh, 30% and a 20% equity stake.  Put your guess in comments.  Whoever comes closest get an autographed 8x10 of Lee Iacocca.

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