Chrysler Repays TARP Loan Years in Advance
When the US TARP fund bailed out Chrysler in the midst of the recession, the future still looked bleak for the iconic brand. Cut loose from its German sibling and left to work with some unknown equity fund, all estimates of loan repayment put the earliest date of un-indebtedness years down the road.
However, thanks to the work of Chrysler’s new parent company Fiat, Chrysler can enjoy a debt-free future as of July 22, 2011. Paying back the final installment of $560 million US, the company no longer maintains any obligations to the government, Assistant Secretary for Financial Stability Tim Massad reported that the payment represented "a major accomplishment and further evidence of the success of the Administration's actions to assist the U.S. auto industry."
However, that statement isn’t entirely true, as the loan repayment does not include the $1.3 billion US owed by “Old Chrysler.” Separated from the “new Chrysler” during the bankruptcy proceedings, the United States government has already gone on record as saying that it does not expect to recover that particular debt in any material way.
