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Tue May 24, 2011
Chrysler set to pay back federal loans today
Chrysler will pay back its federal loans in full today. Michigan Radio's Tracy Samilton reports:
It's another milestone in the company's long struggle to recover from bankruptcy. Chrysler will wire-transfer nearly $6 billion to the U.S. Treasury and $1.5 billion to the governments of Canada and Ontario. Chrysler used some cash from Fiat for the transaction - and refinanced the rest with loans from private banks and investors.
The move will save Chrysler $300 million a year in interest and is one more step towards independence from the government.
The U.S. Treasury still holds about eight and a half percent of Chrysler stock. Fiat could end up buying that stock in the future. As of today, Fiat owns forty-six percent of Chrysler.
The news is making headlines this morning:
- The Detroit News: Chrysler CEO to turn page on 'painful chapter'
- The Detroit Free Press: Chrysler to pay off government loans today
- The Wall Street Journal: Chrysler sets payback
- Mlive.com: White House officials coming to Metro Detroit with Chrysler expected to repay loans Tuesday