There are furious behind the scenes negotiations to place $12 billion of debt to finance the Cerberus buyout of Chrysler.
The deal is still not done and there is talk that the interest rate Cerberus will have to pay will be substantially higher than originally envisioned.
Also, there's talk of offering investors in the most secure part of the debt additional protection with a so-called first loss provision. In that case, senior creditors will have some initial buffer from potential losses.
A spokesperson for Cerberus declined to comment on the transaction, but said they remain confident the financing will be in place. A person familiar with the deal said it could close as early as next week. Traders says that's probably true, it'll just cost more in financing.