RENAULT TO FORGIVE AMERICAN MOTORS <AMO> DEBT
France's <Regie Nationale des Usines
Renault> agreed to forgive 150 mln to 200 mln dlrs of American
Motors Corp debt as part of Chrysler Corp's <C> 1.5 billion dlr
acquisition of American Motors, a Chrysler official said.
    Chrysler investor relations director Everett Scranton said
through a spokesman that the French state-owned car group
agreed to forgive the debt as part of a complex payment for
Renault's 46.1 pct stake in American Motors.
    Other terms of the accord call for Chrysler to give Renault
a 200 mln dlr, eight pct note due in 10 years and 35 mln dlrs
in cash for its American Motors interest.
    Chrysler will also make a further payment to Renault of up
to 350 mln dlrs, depending on Amerian Motors' future
performance, Scranton said.
    American Motors' board will consider the Chrysler bid again
this Friday at a regularly scheduled board meeting.
 Reuter
