U.S. won’t recover $3.7 billion TARP loan from Chrysler

Chrysler - Auburn Hills

A disclosure statement filed with the New York bankruptcy court in Manhattan on behalf of Old Carco LLC (the units of Chrysler remaining under bankruptcy status during liquidation), laid out a proposal whereby the U.S. treasury will not recover any portion of the TARP loan that Chrysler received in the amount of $3.7 billion.

The purpose of the disclosure statement is to provide a comprehensive breakdown of a proposed reorganization to creditors so that they may vote on a plan.

The plan did propose however, to repay Class 1 priority claims in full.

– By: Stephen Calogera

Source: MSNBC