Posted on 05/05/2009 3:16:34 PM PDT by Oldeconomybuyer
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.
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...
(Excerpt) Read more at money.cnn.com ...
...Ahhh, mugshots for wanted, extremely dangerous posters...
Well that’s money well spent.
Just like the rest of the bailout money. We aint gonna see sh*t!
Why would anyone expect the UAW to pay back anything after they get the keys to the front office?
It seems that the only piracy isn’t on the high seas!
We should begin thinking about boycotting Chrysler and Government Motors and buy American Ford products. Zero’s little green fiat junk scooters along with Gov Motors elecs can sit in the parking lots. Enjoy your newly found unearned wealth, UAW!
Cerebrus and Bain Capital secured their bondholders interest. Never should have offered the bridge loan to a privately held interest. The UAW is going to get Zilch. Hopey-Changey we CAN believe in for sure. Liquidate the assets and quit making buggy whips.
No sh*t Einstein! Hell I knew that BEFORE the bailouts...
After doing this he has taken control of the company. So it would be fairly reasonable to assume Obama is responsible for this decision that we will not be getting our money back.
So he basically lied to us all if you connect these events did he not?
Not to mention that we are now finding out that he intends to give 55% of Chrysler (which he obtained with our money) to the Labor Unions? He steals our money, buys a company, gives that company to a Labor Union, and now reneges on the promise that we would get that money back?
This makes Iran Contra look like a tempest in a teapot.
Folks - we are being stolen blind.
THe Jeep Wrangler is up for sale. I was shocked. One of the few assets worth holding onto. I spoke with my attorney gnome who knows those affected by Fiat mergers. This gnome response was Fiat is a stripper, and they will strip it out and sell it.
My gut feel at this point is, Obama, the Tax Payer, and all the chrysler workers, and the US is going to get a royal screwing.
amazing... so we all pay to protect these union jobs.. meanwhile so many are out of work, without this type of protection.. guess some people are just more “equal” than others.
sheesh...this just keeps getting worse and worse.. each day brings a new development, that is more incredulous than the last.
Did Obama mention this during his press conference?
Not really. Obama’s loan was tied to the Fiat deal that fell apart when Chrysler filed bankruptcy. The only hope for taxpayers is if the Trustee finds the loan proceeds were used as preferential payments.
I’d read today about the D Senator from MI, and a bill that would let the government “give” $4,500 in rebates to people who traded in their low MPG vehicles and bought a Chrysler.
In a saner world these Obama folks would be begging for a trial.
ML/NJ
good point
More reasons not to buy a Chrysler vehicle.
It is difficult for me to believe anyone with an ounce of common sense will buy a Chrysler or GM product at this point—even brain dead pubbie moderates and demrats.
Of course, if your purpose is to buy one as cheap as you can get it and then drive it into the ground I guess that might work. On the other hand, I would expect union thug workers to begin sabotaging as many vehicles as possible once they realize they bought into a pig in a poke.
They contributed mightily to creating this mess, but they’ll no doubt blame everyone but themselves when Chrysler and GM go the way of the Dodo bird.
Anyone who believes The Marxist Onada and his crowd had any intention of ever recovering any tax payer money must believe in the Tooth Fairy. The two main purposes of this whole trumped up lending and financial crisis was income redistribution and business nationalization. Nothing more, nothing less.
Every time I think about those clowns in Congress managaging car companies I have to laugh. They have absolutely no credentials to do it; and they can’t even manage the Federal Budget.
Before I would promote Ford products I would want to verify that they didn’t “pay their dues” up front. Did they ask for bailout money?
Then it is time we stop calling what Chrysler got...”a loan”. A loan is something that is eventually repaid.
I thought you couldn’t discharge Federal debt in a bankruptcy - is that wrong?
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