Chrysler bailing out on their bail out promise?

[DaemonSeid]

NEW YORK (CNNMoney.com) -- Chrysler LLC will not repay U.S. taxpayers more than $7 billion in bailout money it received earlier this year and as part of its bankruptcy filing.

This revelation was buried within Chrysler's bankruptcy filings last week and confirmed by the Obama administration Tuesday. The filings included a list of business assumptions from one of the company's key financial advisors in the bankruptcy case.

Some of the main assumptions listed by Robert Manzo of Capstone Advisory Group were that the Treasury would forgive a $4 billion bridge loan given to Chrysler in the closing days of the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing approved last week by the Obama administration to fund Chrysler's operations during bankruptcy.


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[AGDee]

They were railroaded into the bankruptcy by a few greedy hedge funds. I hope those funds don't get a penny now. None of this would have been necessary if they had compromised. This thing is a total cluster f***. In any case, it's out of Chrysler's hands and up to the bankruptcy judge in NY.

[KSigkid]

Originally Posted by AGDee

They were railroaded into the bankruptcy by a few greedy hedge funds. I hope those funds don't get a penny now. None of this would have been necessary if they had compromised. This thing is a total cluster f***. In any case, it's out of Chrysler's hands and up to the bankruptcy judge in NY.

Well Chrylser had something to do with it too...I think just purely blaming it on the hedge funds gives Chrysler a bit of a free pass.

That said, I think this is something that was expected by those of us who opposed the bailout. It's not all that surprising.

[PiKA2001]

This whole auto bailout has been a joke from the start. Anybody with any common sense knows that (Especially) Chrysler and GM are not going to make it, so why throw billions of dollars at them? They should have just had them both file for bankruptcy in January, could have saved the taxpayers about 10 billion.

[TexasWSP]

Originally Posted by PiKA2001

This whole auto bailout has been a joke from the start. Anybody with any common sense knows that (Especially) Chrysler and GM are not going to make it, so why throw billions of dollars at them? They should have just had them both file for bankruptcy in January, could have saved the taxpayers about 10 billion.

Common and sense being the key words.

I believe we were told the world would end if we didn't pass a spendin....errr, cough....stimulus bill and bail out the banks/auto industry.

I'd have been happier if they would have just taken 10 billion and lit it on fire in the middle of the streets.

[Coramoor]

Originally Posted by PiKA2001

This whole auto bailout has been a joke from the start. Anybody with any common sense knows that (Especially) Chrysler and GM are not going to make it, so why throw billions of dollars at them? They should have just had them both file for bankruptcy in January, could have saved the taxpayers about 10 billion.

Common Sense and bailing out Chrysler had nothing to do with it.

Opie had to repay the unions that helped him get elected somehow.