Chrysler won't repay bailout money

[ron2368]

Chrysler won't repay bailout money
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.

http://money.cnn.com/2009/05/05/news/companies/chrysler_loans/?postversion=2009050517

 

[TGregg]

And who is surprised? Just the bailout dolts, most too embarrassed to admit it.

 

[bond_trad3r]

Will heads roll for this financial mismanagement. Chrysler should have went bankrupt the first time.

 

[Mercor]

Let's quit playing games. Just put the the union workers on the Goverment payroll and shut down the company.

 

[theDudeAbides]

Not suprising I suppose. But, I wonder if this just a case of the reporter talking past a govt official?

The deal with Fiat does not allow Fiat to take more than 49% stake in the company until the Treasury has been paid.

Scroll down to "2. The transaction" section in the text from Fiat's press release:

http://scoop.chrysler.com/2009/05/01/fiat-press-release-regarding-chrysler-alliance/

EDIT: I see now - the official is clarifying that the ONLY loans expected to be repaid are those given AFTER the bankruptcy. (Fiat needs to repay $1.7 of the $4.7 bn before it can take majority control)

 

[gangof4]

Quote from Mercor:

Let's quit playing games. Just put the the union workers on the Goverment payroll and shut down the company.

don't be silly. they'd never downgrade their pay and benefits to the level of mere govt employees. with Obama running the show, the UAW will own detroit. i'm sure they'll do a great job running things too...

 

[Bigpipn]

There will be little outrage about this because most Americans have a friend who works in the Automobile Industry, so, it feels like "Obama Nation" is helping out one of their buddies when he bails out Chrysler or GM. (I'm definitely not saying that bailing out or subsidizing any other company is right).

Most don't have Quant Friends at Investment Banks who make >$250k/yr, so, they get all worked up when they hear the gov't bailed them out.

Anyone who makes more than Joe and Mary Average American is greedy and shouldn't be bailed out.

The Gov't has changed the game of Capitalism. The only rule now is the Gov't is God. The Gov't will choose who passes "Go" and who collects bailouts.

If the rules were fair I would have been filled on all my trades today and made 3x what I did.

If the rules were fair I also would have never been given the opportunity to trade because I started with under $1k in equity.

"Take what you can get from The Gov't and leave" will be the name of the new game.

 

[Bigpipn]

Quote from Mercor:

Let's quit playing games. Just put the the union workers on the Goverment payroll and shut down the company.

Already done. "Bridge loan" is gone. These companies are more insolvent than Citigroup ever was (is).

$17MM of it gone on Viagra scripts over at GM.

 

[theDudeAbides]

I was impressed with what I initially assumed were the terms of the Fiat alliance. I now think the original disclosures were seriously lacking - and that it was likely intentional.

 

[pspr]

Ahh, don't worry about it. Heck, we're all going to be nuked before Obama gets out of office anyway. And that's going to be merciful because our money is going to be worthless soon.