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Trust That Holds Chrysler Stake Faces $3 Billion Funding Shortfall
The United Auto Workers union trust that owns 41.5% of Chrysler Group LLC has about $3 billion in unfunded retiree benefit obligations, Bloomberg News reports.
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The United Auto Workers union trust that owns 41.5% of Chrysler Group LLC has about $3 billion in unfunded retiree benefit obligations, Bloomberg News reports.
The trust provides healthcare coverage for about 61,200 Chrysler retirees. It hopes to cover that shortfall and more by selling its Chrysler equity, either directly to Fiat SpA or through an initial public offering.
The trust estimates its Chrysler stake is worth about $5 billion. Fiat, which already owns 58.5% of the carmaker, has the legal right to demand a sale for $6 billion but reportedly has offered no more than $4 billion.
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