Chrysler won't repay bailout money

Source: CNN

An administration official confirms that a $4 billion bridge loan and $3.2 billion in bankruptcy financing won't be paid back by Chrysler following bankruptcy.

By Chris Isidore, CNNMoney.com senior writer
May 5, 2009: 4:54 PM ET

NEW YORK (CNNMoney.com) -- Chrysler LLC will not repay U.S. taxpayers more than $7 billion in bailout money it received earlier this year and as part of its bankruptcy filing.

This revelation was buried within Chrysler's bankruptcy filings last week and confirmed by the Obama administration Tuesday. The filings included a list of business assumptions from one of the company's key financial advisors in the bankruptcy case.

Some of the main assumptions listed by Robert Manzo of Capstone Advisory Group were that the Treasury would forgive a $4 billion bridge loan given to Chrysler in the closing days of the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing approved last week by the Obama administration to fund Chrysler's operations during bankruptcy.

An Obama administration official confirmed Tuesday that Chrysler won't be repaying the loans. A portion of the bridge loan may be recovered by Treasury from the assets of Chrysler Financial, the former credit arm of the automaker which is essentially going out of business as part of the reorganization.



Read more: http://money.cnn.com/2009/05/05/news/companies/chrysler_loans/index.htm?cnn=yes

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ALWAYS read the fine print. :nuke:

nt

I'm sorry. That's just too damn funny.:rofl: :rofl: :rofl: :rofl: :rofl:

:rofl:

and corporation's do`t have to...i wonder who wrote the terms of the loan....

Current law protects the vehicle dealer only if the maker decides to end the franchise agreement. Under the law, the manufacturer ending the agreement has to buy back the newest two model years of inventory, along with replacement parts and some special tools. But not if the maker files bankruptcy.

...in the first place. That's what bankruptcy is for. Giving a huge loan to a company on the verge of bankruptcy is just plain dumb.

Our Chrysler T&C ltd. from 2001 needs to be replaced soon.

In every crisis there is opportunity.

And then pay it back early?

considering their FIVE HUNDRED MILLION DOLLAR or so salaries...

way to go bush*!!!

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Banksters win, and still winning under President Obama

"Change" ?

"Hope" ?

:freak:

:kick: