Chrysler Repays TARP Loans
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Chrysler Group LLC paid its outstanding TARP loans, six years before the scheduled maturity of those loans in 2017, according to the U..S. Department of the Treasury.
Chrysler Group LLC repaid $5.1 billion in TARP loans and terminated its ability to draw a remaining $2.1 billion TARP loan commitment.
Over the course of the loans, Treasury has received $1.5 billion in interest and fees from Chrysler Group LLC, including $865 million associated with today’s transaction.
"Chrysler's early repayment of its outstanding TARP loans is an important step in the turnaround of this company and the resurgence of the auto industry," said Treasury Secretary Tim Geithner. "Because President Obama made the tough decision to stand behind and restructure the auto industry, America’s automakers are growing stronger, making new investments, and creating new jobs today throughout our nation’s industrial heartland."
Chrysler has now returned more than $10.6 billion of the total $12.5 billion committed to the automaker under TARP's Automotive Industry Financing Program.
Treasury continues to hold a 6.6 percent common equity stake in Chrysler, but reiterated that is will unlikely fully recover its remaining outstanding investment of $1.9 billion in Chrysler.
Chrysler Group LLC repaid $5.1 billion in TARP loans and terminated its ability to draw a remaining $2.1 billion TARP loan commitment.
Over the course of the loans, Treasury has received $1.5 billion in interest and fees from Chrysler Group LLC, including $865 million associated with today’s transaction.
"Chrysler's early repayment of its outstanding TARP loans is an important step in the turnaround of this company and the resurgence of the auto industry," said Treasury Secretary Tim Geithner. "Because President Obama made the tough decision to stand behind and restructure the auto industry, America’s automakers are growing stronger, making new investments, and creating new jobs today throughout our nation’s industrial heartland."
Chrysler has now returned more than $10.6 billion of the total $12.5 billion committed to the automaker under TARP's Automotive Industry Financing Program.
Treasury continues to hold a 6.6 percent common equity stake in Chrysler, but reiterated that is will unlikely fully recover its remaining outstanding investment of $1.9 billion in Chrysler.
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