About Chrysler’s bankruptcy

Why do I have an image of Barack Obama wringing his hands and chortling, “I have them right where I want them?”

There’s lots on the internet right now, but I still can’t figure out exactly what happens to the taxpayer billions. So far I’ve read this and this and about a dozen other things. I can’t find an answer!

Help, please.

Comments

  1. Details on U.S. Government Support:

    Consistent with the President’s commitment to provide adequate working capital to help Chrysler through this restructuring period and loan up to $6 billion to the Chrysler-Fiat Alliance, the U.S. government has committed to provide assistance sufficient to help give Chrysler a chance to achieve financial viability.

    *
    Working capital: The U.S. government is prepared to provide approximately $3.3 billion in debtor in possession financing to support Chrysler through an expedited chapter 11 proceeding.
    *
    Loan to the New Chrysler: Upon closing, the U.S. government is prepared to loan approximately $4.7 billion to New Chrysler, in the form of a term loan with $2.1 billion due in 30 months and the balance 50% due on the 7th anniversary and 50% due on the 8th anniversary of the loan. The interest will be an appropriate combination of cash and payment-in-kind. There is also an additional note of $288 million which is a fee for making these loans. The loans will be secured by a first priority lien on all of Chrysler’s assets.

    from: http://www.ustreas.gov/press/releases/tg115.htm

  2. “I still can’t figure out exactly what happens to the taxpayer billions.”

    I heard a commentator state yesterday that 350 billion of the tarp funds cannot be accounted for. I don’t know how to verify this.

  3. Denninger thinks it’s gone.

    http://market-ticker.denninger.net/

    The Treasury loan WAS unsecured, IIRC.

  4. Ah-hah. Here’s more info via a link from Dad29.

    –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.–