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

[KansDem]

1. This makes Bailout No. 2 for Chrysler.

1979 and 2009.

Are we going to be bailing them out every 30 years or so from now on?

Someone want to remind me again what the tenets of capitalism are?

[Kolesar]

4. And one for Nissan and one for GM ... eom

[OnlinePoker]

6. They weren't bailed out by the government 30 years ago.

The government cosigned the loan so Chrysler could get more favorable interest rates, but the company payed the loan in full. The government didn't actually give any money to the banks or the company.

[dipsydoodle]

2. If Fiat buy another 16% they'll own 41%

which presumably will make them the effective owners : they already own 25%.

[Purveyor]

3. Where's the 'we'll never see a dime of our taxpayer $$ paid back' crowd? eom

[Kolesar]

5. Waiting for the Moon to rise so they can go bark at it

Or whatever Sean Hannity tells them to be mad at next.

[former9thward]

7. Right here. U.S. to lose $11 billion on GM

Yes the taxpayers will not see a dime back. Make that 110 billion dimes. http://online.wsj.com/article/SB10001424052748703916004576271382418887092.html

[KansDem]

8. Thanks for the link...

I'm so sick and tired of laissez-faire capitalists who insist government stay out of their affairs coming around for a handout when they mis-manage their business and are about to go broke.

Not only do the taxpayers bail them out, they demand and receive bonuses as well!

[Purveyor]

9. The topic of this thread is Chrysler, not GM but thanks for playing just the same... eom

[former9thward]

10. You are the only one here that is playing.

GM and Chrysler were given loans in the same package with GM receiving a far larger amount. The U.S. owns about 7% of Chrysler and can only get that back if they sell their stock. When they do they will lose like they did at GM. So, yes, I am part of the crowd that says the U.S. will not get a dime back.