A Chrysler Creditor Blinks

A Chrysler creditor has blinked, but only after the automaker sought bankruptcy court protection.

Perella Weinberg Partners, one of the creditors accused by President Barack Obama of blocking a proposed deal and forcing Chrysler into bankruptcy, said late Thursday it has changed its mind and agreed to Chrysler's terms.

"The Perella Weinberg Partners' Xerion Fund has today agreed to the Chrysler settlement offer extended yesterday to the secured lender group," the firm said in a prepared statement.

"We believe that this is in the best interests of all Chrysler stakeholders, and our own investors and partners," the firm said. "We are working with other non-TARP Lenders to encourage broad participation in the settlement."

Obama said Thursday that Chrysler was forced into bankruptcy because a small group of investors and hedge funds would not go along with a deal to save the iconic automaker.

He said the small group was "hoping that everybody else would make sacrifices and they would have to make none. Some demanded twice the returns that other investors were getting.

"I don't stand with them," he said.

The holdouts have been identified as Oppenheimer Funds, Perella Weinberg and Stairway Capital.

The Chrysler filing did not have a negative impact on the shares of Ford(F) and GM(GM). Ford closed up 10% to $5.98, while GM was up 6% to $1.92.

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