It's Official: Kiss Chrysler's $8.34 Billion Bailout Bucks Goodbye

Robert Farago
by Robert Farago
it s official kiss chrysler s 8 34 billion bailout bucks goodbye

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.

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4 of 19 comments
  • Landcrusher Landcrusher on May 05, 2009

    Old Guy, Good one! Poor Jack Kemp, hardly in his grave, and now he must already be rolling around in it.

  • Paris-dakar Paris-dakar on May 05, 2009

    This story must be in error. Many of The Intelligent People Who Post Here said that this was impossible.

  • Davekaybsc Davekaybsc on May 05, 2009

    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?

  • Theflyersfan Theflyersfan on May 05, 2009

    "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!