Gee no one saw that one coming! From DetNews:
A federal bankruptcy judge Monday allowed Chrysler LLC to tap $4.5 billion in U.S. and Canadian government loans to finance its stay in bankruptcy, but a top company adviser warned that it’s “highly unlikely” the company will repay them.
But wait there’s more…
U.S. Bankruptcy Judge Arthur Gonzalez rejected a request by dissident creditors to deny Chrysler use of the loan money.
You go judge, who cares if the tax payer gets screwed!
Attorney Ball and Chrysler officials declined to comment on Manzo’s assessment that repayment of the $4.5 billion is “highly unlikely.”
What more is there to say?
In court papers fielded last week, Chrysler said it expects the U.S. Treasury to forgive the $4 billion loan made in January. A senior Obama administration official didn’t dispute that assessment, but declined to comment on whether Treasury would recover any of the $4.5 billion in debtor-in-possession financing.
So it wasn’t a loan after all? Who’d of thunk the taxpayer would be left holding the bag.
Well at least the UAW will be well funded.
United Auto Workers Union President Ron Gettelfinger said the union intends to sell the equity stake it gained in Chrysler as soon as possible — but said that may take years. A union trust to pay for retiree health care, known as a Voluntary Employees’ Beneficiary Association, or VEBA, got 55 percent of Chrysler as part of a concession plan ratified by workers last week.
Only 55% of a company you yourself drove into the ground, man you guys really took it on the chin in your negoations.
I’m sure the GM bailout loan will go MUCH better.
P.S. Should we be worried about TARP? Naaah, what could go wrong?