The list of Chrysler holdouts keeps getting smaller. OppenheimerFunds, one of the original members of the so-called Chrysler Non-Tarp Lenders, is pulling out of the group opposed to the federal government’s plan for restructuring the car manufacturer’s secured debt.
The mutual fund company issued a statement Friday saying it no longer sees any reason to keep fighting the Federal Automotive Taskforce’s proposed settlement to Chrysler debt holders. OppenheimerFunds goes on to say it “can no longer reasonably expect to increase the recovery rate on the debt” by opposing the government.
OppenheimerFunds’ decision to bolt from the group makes it increasingly more likely that Chrysler may be able to avoid a protracted bankruptcy reorganization. Don’t be surprised if other holdouts look to cut their losses and give up the fight in the coming days too.