A senior advisor to Chrysler said today that it is “highly likely” that the U.S. Treasury Department and the Canadian governments are likely to recover none of the $4.5 billion they will be loaning to Chrysler during its up-to-60-day bankruptcy stay.
Ron Manzo said that Chrysler isn’t required to pay interest on the $4.5 billion in debtor-in-possession financing. The U.S. Treasury has loaned Chrysler about $3.34 billion while the Canadian government chipped in $1.15 billion.
The Obama administration has refused to say how much the U.S. government will get back of the $4 billion that the Bush Administration loaned to the company in January.
– By: Kap Shah
Source: Detroit News