2 bondholders drop Chrysler plan oppo

Said group got too small to be effective

Updated: Friday, 08 May 2009, 11:27 AM EDT
Published : Friday, 08 May 2009, 11:25 AM EDT

NEW YORK (AP) - Two of Chrysler's dissident bond holders say they're dropping their opposition to the automaker's proposed restructuring plan.

OppenheimerFunds and Stairway Capital Management say the group opposing the plan just got too small to be effective.

Earlier this week, the group's nine funds said they represented $295 million of Chrysler LLC's total secured debt of $6.9 billion. That was down from previous estimates of 20 members with about $1 billion in debt.

It's not known how much debt the remaining seven funds represent now.

In the days leading up to Chrysler's bankruptcy filing, banks holding 70 percent of debt agreed to a deal that would give the bond holders 29 cents on the dollar. But the dissident lenders said the deal was unfair.

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