The company Old Carco — better known as “Old Chrysler” — will not repay the initial $4 billion government loan it received from the Troubled Asset Relief Program in January, according to the reorganization plan filed in a New York bankruptcy court.This means unsecured creditors will likely not recover their claims. The Creditors’ Committee has filed a lawsuit against former Chrysler owner Daimler AG and could receive payment if they win the lawsuit. Some secured lenders may receive full compensation for their outstanding $20.6 million.
The $4 billion loan was approved by the Bush administration and has nothing to do with the additional aid the new Chrysler Group received to get itself restarted in a partnership with Fiat.
Thank you so much, President Bush. Really. Your incredibly generous use of our taxpayer funds will not be forgotten.
Seeing as this isn’t including the TARP money that our current idiot-in-chief gave the company, I can only imagine when a similar announcement about that money will be coming from the head of Chrysler.
What a scam. A failing company just took the American public for four billion dollars. To put that in perspective, that’s 80,000 people’s worth of $50,000 a year salaries.
No way that money could’ve been spent better, right?