http://www.msnbc.msn.com/id/34434831/ns/business-autos
MSNBC said:
NEW YORK - The U.S. Treasury will not recover any portion of the $3.7 billion still outstanding in loans it made to automaker Chrysler under the Troubled Asset Relief Program, according to the terms of a plan filed with bankruptcy court on Tuesday.
The U.S. government has filed proofs of claim for unpaid principal, interest, fees and expenses, but "will receive no recovery on account of such claim," according to court documents filed on behalf of Old Carco LLC, the units of Chrysler that remain under bankruptcy protection while they are liquidated.
The proposal was laid out in a disclosure statement filed with the New York bankruptcy court in Manhattan.
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This is why I didn't want to lend you anything in the first place....
Both the treasury and chrysler must be run by retards!
what happened to the fiat connection? I was looking forwards to a 500 Abarth
According to the article below it seems like fiat is still an active partner with Chysler.... But there seems to be a lot of finantial "issues" in the works. The end result is that the tax payers get screwed out of another few billion...
Detroit news
Refer to my post
http://grassrootsmotorsports.com/forum/off-topic-discussion/most-overused-words-and-phrases-of-2009/17080/page1/
There's something perversely impressive about making a business decision so bad it makes it seem unpatriotic to buy American.
Is anyone really surprised? Really?
Even if they DO get a massive influx of money, R&D and saleable products from Fiat, I STILL wouldn't give Chrysler a 50% chance of still existing in 10 years.
NYS bankruptcy court judges need to get punched in the throat until either your fist falls off the end of your arm or their head falls off the top of their neck.
theres no acceptable reason why Scheist-ler shouldnt be forced to repay every effing dime
Tim Baxter wrote:
Is anyone really surprised? Really?
Even if they DO get a massive influx of money, R&D and saleable products from Fiat, I STILL wouldn't give Chrysler a 5% chance of still existing in 10 years.
Tim I noticed you hit a 0 when you typed your 5. Caught it for you in editing before it went to print.
I"m not the least bit surprised. Someone said Chrysler and the treasury must be run by the "R" word
. The way I see it, the financial guys at Chrysler are freakin' geniouseseses. They figured out a way to fenagle a few billion dollars, and then not even pay a dime back. I want them doing my books!!
All I know is if I were on the board of Hustler...I mean Chrysler, and I lived in the US, I wouldnt leave my home in the near future.
You'll note that this is the part of Chrysler that is getting liquidated, not what is surviving.
All it means is that nobody is going to pay decent money for the stuff that "Old Chrysler" is selling off. Of the 15B Chrysler got, this covers 4B of that, and says that 3.7B will not be recovered in liquidation. This is "Old Carco".
The rest of the money is being used to finance new cars under management WITH Fiat. That would be Chrysler LLC.
Basically, when the deal was made, the two parties should have negotiated what part should not get funding, since it will be liquidated. Since that didn't happen, we loose a couple of days of occupation money.
Again, this ISN'T Chrysler LLC, but Old CarCo- the parts of Chrysler that got split off to be liquidated.
So if you are looking for some engine machining tools + stamping/welding equipment, you can get a darned good deal on it.
Eric
Unfortunately this seems to be a reoccuring theme with the government somehow not managing to ensure that the taxpayers get adequate security for the money they throw down black holes...
In a twisted sort of way, I am amused that an auto manufacturing (?) "entity" refers to itself LEGALLY as Old Car Co. That sounds like the brand of automobile someone like Roger Rabbit would drive.
"Me? I drive a 1956 convertabout, built by the Old Car Co."
Strizzo
SuperDork
12/17/09 10:39 a.m.
thats just what they put all the crappy assets under when the pulled out the good stuff and left the rest to die, along with some money that won't be repayed
GM did a similar thing. They lumped all "bad dept" into the old GM and it's going away. That's what bankruptcy is. How they hid a few billion of the bailout dollars in there is interesting.
Maybe the gubment could charge-back Daimler for the raping and pillaging they did to recover that 3+ billion.
They should've stuck to the original bailout plan of letting chrysler go under.
Do you guys really think this wasn't a pre-arranged situation, come on now, or am I just a cynic
BoxheadTim wrote:
Unfortunately this seems to be a reoccuring theme with the government somehow not managing to ensure that the taxpayers get adequate security for the money they throw down black holes...
And you are surprised, why?
