Chrysler announces plan to repay government loans
Filed under: Government/Legal, Chrysler, Earnings/Financials

Chrysler CEO Sergio Marchionne and President Barack Obama meet at Chrysler's Indiana Transmission Plant II
Remember a few months back when Chrysler/Fiat CEO Sergio Marchionne complained about the terms of the loans received from the government? "Shyster loans" is what he deemed them, a term for which he later had to apologize. But the answer was clear: if Marchionne and his compatriots don't like the terms of the loans offered from the public coffers, they were free to pay them back and refinance. And according to a statement released today from Chrysler headquarters in Auburn Hills, Michigan, that's precisely what they plan to do. And do soon, apparently. The statement declares that Chrysler will pay back 100-percent of the loans taken out from the U.S. federal government, the Canadian federal government and the Ontario provincial government, sometime in the second quarter of 2011. That's the quarter we're currently in, by the way, meaning that if Chrysler sticks to the plan, the governments will be fully repaid by the end of June. Of course, Chrysler hasn't recuperated all those funds from their revenues. Not just yet, anyway. Part of the money is coming from the increased shares which Fiat has bought in Chrysler, while the rest is coming from new (presumably privately secured) loans and debt securities that do not require registration under the Securities Act, which should help Chrysler refinance its debts more easily. Details in the press release after the jump. [Source: Chrysler]
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Chrysler announces plan to repay government loans originally appeared on Autoblog on Thu, 28 Apr 2011 09:01:00 EST. Please see our terms for use of feeds.
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