Chrysler won’t pay back any of the $3.7 billion in U.S. Treasury loans
By Andrew C., 30 Aug, 2010. 0 Comments
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The terms of a plan were filed recently in Bankruptcy Court and according to them, Chrysler won't pay back any of the $3.7 billion still outstanding in U.S. Treasury loans made under the Troubled Asset Relief Program. The US government has filed proofs of claim for unpaid principal, interest, fees and expenses however it "will receive no recovery on account of such claim."
These court documents were filed on behalf of Old Carco, which includes the units of Chrysler that remain under bankruptcy protection while liquidation is ongoing.
This proposal was laid out in a disclosure statement that was filed with the New York court. A disclosure statement is described to be a comprehensive document sent to creditors before they vote on a plan of reorganization. The Old Carco plan also proposed repaying in full its highest priority claims, called "Class 1."
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