Cerberus Capital is buying Chrysler back from the Germans for $7.4 billion. After spending $37 billion to buy the American carmaker, then billions more trying to keep it afloat, Daimler gets to keep all of Chrysler’s debts. (At least, they get to write them off against activities at Mercedes and other going business concerns.) The big she-daddy problem that is Chrysler’s billion-dollar pension nightmare will be spun off into a separate holding company, called Chrysler Holding.
And Cerberus — the three-headed dog who guards the gates of Hades — gets to keep the car company. Cerberus now owns the Chrysler, Dodge and Jeep makes, and Chrysler Financial. They just bought GMAC financing, the only part of GMC worth a spit. And they’re looking at the 2005 bankruptcy Oscar winner, Delphi.
Look for Cerberus to come out strong next year with a new and improved debt-free global automaker for sale… and a fistful of performance fees stuffed into its own pockets.