Chrysler won’t repay bailout money

We were lied to, and are being screwed by Obama yet again. They never intended to pay back any of that money. It was all just political payoff. When enough Americans wakes up, it will be too late to do anything about the treachery.


http://money.cnn.com/2009/05/05/news/companies/chrysler_loans/

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.

By Chris Isidore, CNNMoney.com senior writer
Last Updated: May 6, 2009: 3:44 AM ET

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, though a portion of the bridge loan may be recovered by Treasury from the assets of Chrysler Financial, the former credit arm of the automaker which is essentially going out of business as part of the reorganization.


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