Chrysler won't repay bailout money

[eppur_se_muova]

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:

[hatrack]

1. Oops!

nt

[Autumn]

2. LOL

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

[RUMMYisFROSTED]

3. I don't think "loan" means what you think it does.

:rofl:

[ejpoeta]

9. it only means it when applied to us i guess.

[madrchsod]

4. joe six pack has to "pay off" his loan when filing bankruptcy

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

[Speciesamused]

5. They will also get out of the contracts with their dealers they close.

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.

[mike_c]

6. good money after bad-- this is why they should never have been bailed out...

...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.

[Torn_Scorned_Ignored]

7. Great! New cars for everybody!!

[Dappleganger]

19. That's what I was thinking...

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

[rfranklin]

8. Guaranteed that someone skimmed a few hundred million...

In every crisis there is opportunity.

[TheCoxwain]

10. We just gave 4 billion - to an Italian car company!!!

[Hong Kong Cavalier]

11. Huh. Didn't Lee Iacocca borrow money for Chrysler?

And then pay it back early?

[BelgianMadCow]

12. How convenient - hope the banks don't get the same idea. n/t

[Tansy_Gold]

13. I think they're the ones who gave the idea to Chrysler

[neverforget]

14. They're WAAAAYYYYY ahead of us......

[Romulox]

20. Errr, the money GIVEN to Wall Street weren't loans at all... nt

[TankLV]

15. 7 Billion - that's what - salary for FOURTEEN to TWENTY CEOS?

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

way to go bush*!!!

[Name removed]

16. Deleted message

Message removed by moderator. Click here to review the message board rules.

[ConcernedCanuk]

17. How many homes for the homeless would that buy? - FOOD even?

.
.
.

Banksters win, and still winning under President Obama

"Change" ?

"Hope" ?

:freak:

[psychopomp]

18. Kick

:kick: