By making a $7.6 billion payment to U.S. and Canadian governments, Chrysler has ended the saga of their bankruptcy.
Six years ahead of schedule, Chrysler has repaid all of their government loans.
By making a $7.6 billion payment to U.S. and Canadian governments, Chrysler has ended the saga of their bankruptcy. To date, the company has forked over a total of $10.3 billion to cover the loans and interest that were incurred as part of the process to save them from collapse.
According to Chrysler CEO Sergio Marchionne, "Less than two years ago, we made a commitment to repay the U.S. and Canadian taxpayers in full and today we made good on that promise. The loans gave us a rare second chance to demonstrate what the people of this company can deliver and we owe a debt of gratitude to those whose intervention allowed Chrysler Group to re-establish itself as a strong and viable carmaker."
While it is important to note that Chrysler has repaid the government loans, the company isn't debt free. In essence, Chrysler refinanced their debt through the private sector for a lower interest rate and less government oversight. This may seem like a sleight of hand, but Chrysler estimates the move will save them $350 million a year in interest.
Check out the press release for additional information