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Entries in Repayment (2)

Monday
May232011

Chrysler to Announce Bailout Repayment Tuesday

PRNewsFoto/Chrysler Group LLC, Jim Fets(DETROIT) -- Chrylser is expected to formally announce Tuesday the repayment of the $7.5 billion bailout loan it received from taxpayers, the Wall Street Journal reports.  

Chrysler chief executive Sergio Marchionne and White House advisor on manufacturing Ron Bloom will make the announcement during a visit to a Sterling Heights, Mich. auto plant Tuesday.  

Just two years ago, the auto maker was forced to file for bankruptcy.  But last week, Chrysler entered into a loan and bond deal with private banks making it possible for the company to repay U.S. taxpayers sooner than expected.

The deal includes $3.2 billion in bonds, $3 billion in a term loan and a $1.3 billion revolving credit facility, according to the Wall Street Journal.  Italian auto manufacturer Fiat will help to complete the payment with $1.3 billion cash to Chrysler.  

Chrysler reportedly paid $1.2 billion in interest on the loan last year, but WSJ reports the new deal will allow the company a new rate below 10 percent, saving it $300 million a year.

Copyright 2011 ABC News Radio

Thursday
May192011

Chrysler Set to Repay US Taxpayers Early?

PRNewsFoto/Chrysler Group LLC, Jim Fets(DETROIT) -- After surviving a near-death experience, Chrysler could pay back its government “bailout” loans as early as next week -- six years ahead of schedule.

Automotive News reports that Chrysler Thursday wrapped up a Wall Street re-financing package that will allow the company to repay American taxpayers nearly $6 billion. The U.S. hopes to eventually recover most of its remaining investment -- around $2 billion -- by selling its ownership stake.

On the brink of collapse only two years ago, Chrysler last month reported its first quarterly profit since exiting bankruptcy.

Copyright 2011 ABC News Radio







ABC News Radio