Not long ago, Cerberus Capital Management’s purchase of Chrysler looked like a disaster. Now, it looks more like a bad idea.
The New York-based alternative investments firm will be left with just a 10% loss on its investment in the auto maker following Toronto-Dominion Bank’s acquisition of Chrysler’s former lending unit, Bloomberg News reports. Cerberus took a majority stake in Chrysler in 2007 for $7.4 billion. Just a year later, it was forced to give up control to win government bailout funds for the failing company.
But Cerberus held onto Chrysler Financial, until now. TD will pay about $6.3 billion for the unit; Cerberus will retain about $900 million in assets.