A Chrysler advisor has confirmed it: we’ll never see Chrysler’s government-provided $3.34 billion debtor-in-possession (DIP) financing again. Nor will Canada recoup any of the $1.16 billion they spent helping keep the zombie automaker alive through bankruptcy. Oh, and you can forget the $4 billion worth of US “loans” already bestowed upon Auburn Hills. As The Detroit News reports, all of it’s disappeared down the ChryCo-shaped rathole. “Ron Manzo, a senior financial advisor to Chrysler, said it is ‘highly likely’ the governments will recover nothing. He also noted that Chrysler isn’t required to pay interest on the $4.5 billion in debtor-in-possession financing . . . After Chrysler filed for bankruptcy Thursday, Obama administration officials refused to say how much the government might recover of the $4 billion that the Bush Administration loaned the company in January. A government official confirmed on Monday that the Treasury is unlikely to get any of the first $4 billion but declined to comment on whether the Treasury or Chrysler will be repaid all or part of the debtor in possession financing.” And you do know the feds have promised the new new Chrysler $6 billion in exit financing, right? And [an unspecified amount of] money for GMAC.
So then each American taxpayer gets a free car, right?
John
Wow…it’s a wonder we didn’t see that one coming…
I actually thought we were going to get that money back…
Chrysler must have tried really hard too…
Poor Chrysler.
It’s only a loan.
With Hopeychangey running the company it will soon be making oodles of money.
I suspect this will be ongoing. No wonder the UAW supports big government.
TARP = Taxpayers Are Really Pathetic
the death of supply side economics, continued.
if nobody wants to buy your cars, giving you money so you can make some more cars isn’t going to help. giving money to customers so they can buy your cars might.
a followup to
if people are defaulting on their mortgages, giving you money to write more mortgages isn’t going to help. giving money to mortgage-holders so they can pay their mortgages might.
And so …. conjecture regarding the Government’s security or seniority would appear to be a moot point then yes??
Where is pch101 to tell us that the Chapter 11 is a chance for the taxpayers to get some of our money back!
That’s a lot of Corinthian leather.
More of our tax dollars pissed away by the government.
I’m curious of one thing. According to the terms posted on here Fiat get majority ownership of Chrysler when a bunch of milestones are met(political fuel economy crap) but also when the government is fully paid back. What is that pay back number going to be if all this money is just being flushed away, just $6 billion of the sh*t ton we have “invested”.
Remember:
Democrats & Republicans – First-world prosperity for themselves, Third-world prosperity for the rest of us…
Funny thing is last weekend, the Newark Star-Ledger ran a big article about the new train tunnel from New Jersey into Manhattan. Price? About $8.5 billion. Worries? It might go up in price by $1 billion because of the length of the project. The current tunnels have lasted about 100 years and still going. Life span of the new tunnel? At least 200 years.
All that for the same amount of money fragged on Chrysler in six months.
Hey, RF, you missed Manzano’s Distinction Without a Difference! From the AP:
But Robert Manzo, an executive director with the restructuring group Capstone Advisory Group LLC, said he doesn’t view the government financing as “free money.”
“They’re offering financing with a low likelihood of being repaid,” he said.
I personally feel much better now that I know that $8.34B is not being looked at as “free money” since it isn’t free for me.
Oh, and major props for all references to Corinthian leather in Chrysler bankruptcy articles. RIP, Mr. Khan Montalban.
Ron,
Don’t forget about the other $15 billion that has been doled out to GM for vaporware.
The gov’ment should have let them die back in ’79.
Old Guy,
Good one!
Poor Jack Kemp, hardly in his grave, and now he must already be rolling around in it.
This story must be in error. Many of The Intelligent People Who Post Here said that this was impossible.
But weren’t Jason Vines and crew just lecturing Robert about how Iacocca managed to pay the government back *and early!* after the first bailout?
When will the government see these billions again eh Vines? Got an answer now?
“I’ll take things that were beyond obvious from the start for $1000, Alex.”
Way to do little to nothing with the bailout bucks Chryser. Talk about throwing good money onto bad money. It looks like that 8 billion allowed them to keep things barely up and running just so we could hear about Chrysler/FIAT for a little while. Otherwise…zilch.
Show of hands – how many of you know of 8 billion things that could have used 8 billion dollars that would have gone further and to better use with someone else?
All of you. That’s what I thought!