Ever loan someone money and then they manage to avoid paying you back? By the time you remember they owe you money, their location is unknown and you stand no chance of ever seeing a cent. The good news is that we can all feel that way because Chrysler is not paying back one penny of it’s $3.7 billion dollar TARP loan. Thanks, guys.
To be clear, this isn’t Fiat bailing out on the payments. Nope, Fiat, when it took over, got all the good stuff, and was able to leave all the broken, cash bleeding, tax funded crapola on the table. That mess of offal was renamed (and this is real) Old Carco.
It was Old Carco that submitted the Chapter 11 plan to the government that included the line, “The TARP Financing Deficiency Claims of approximately $3.7 billion is a general unsecured claim; however, the U.S. Treasury will receive no recovery on account of such claim pursuant to the terms of the plan.”
Translation: Thanks for the nearly $4 billion loan. We spent it on hookers, drugs, and cheap booze. It was a blast. Sorry we can’t pay you back, it is just not in our plan.