Chrysler to Repay US, Canada Loans by June 30

[Judi Lynn]

Source: Reuters

Chrysler to Repay US, Canada Loans by June 30
Published: Thursday, 28 Apr 2011 | 9:42 AM ET Text Size By: Reuters

Chrysler Group, which came to the brink of collapse before a federal bailout in 2009, plans to fully repay more than $7 billion in loans from the U.S. and Canadian governments by the end of June.

The company's announcement on Thursday comes almost two years after Chrysler emerged from a U.S.-funded bankruptcy under the management of Italian automaker Fiat.

Chrysler will use the proceeds from term loans and a debt offering to repay the governments. The company will also funnel cash from Fiat to repay the loans.

Fiat announced earlier that it plans to buy a 16 percent stake in Chrysler for $1.27 billion. The debt offering, term loans and the cash infusion from Fiat are all expected to occur concurrently, the company said.



Read more: http://www.cnbc.com/id/42797305