Washington, D.C. – Congressman Gary Peters, whose Michigan Congressional district is home to Chrysler World Headquarters, released the following statement in response to reports that Chrysler has reached a deal with debt holders:

“I am very pleased that principle banks have reached a deal with Chrysler to restructure the company’s debt so it can achieve viability.  A month ago when I first wrote to the CEOs of Chrysler’s major debt holders they were not even at the table, so this is a very positive development.   The remaining debt holders should understand that this deal is better than what they could expect in bankruptcy and I encourage them to accept this fair offer.  I am hopeful this leads to an agreement to finalize an alliance with Fiat so that Chrysler can avoid bankruptcy and continue to support hundreds of thousands of American jobs.”

The four major financial institutions holding the vast majority of Chrysler’s secured debt are JP Morgan, Citigroup, Goldman Sachs and Morgan Stanley.  Congressman Peters wrote to the CEOs of these companies on April 1 asking them to negotiate in good faith with Chrysler to reach a mutually beneficial agreement with the automaker.  At that time, Chrysler’s debt holders were not even at the bargaining table.