Chrysler Rushes To Pay Back Federal Loans

Chrysler is expected to confirm today it has lined up new financing that will allow it to repay next week the nearly $7 billion in government loans it received as part of its 2009 bankruptcy.

Chrysler CEO Sergio Marchionne has said he had hoped to repay the $5.9 billion owed to the U.S. Treasury and another $1.6 billion provided by Canada before the second anniversary of the maker’s emergence from bankruptcy protection, in June 2009.



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bfghemicuda - 5/20/2011 6:23:57 PM

+1 Boost

Yes, a loan from the private sector at a much lower interest rate. The important part is the Tax Payers get paid back with interest. Chryslers profit margin will be higher with less going to high interest rate to the feds.

mini22 - 5/21/2011 12:35:29 AM

+2 Boost

In essence Chrysler will now be structured like Ford but with smaller debt as well as a smaller company. It will no longer be "Government motors". I think it is quite an achievment in a fairly short period of time since emerging form Bankruptsy.