Chrysler has raised $7.5bn from banks and private investors in a deal to repay loans from the US and Canadian governments and increase Fiat’s control over the Detroit carmaker two years after its bankruptcy.
As part of the plan, Italy’s Fiat will buy an additional 16 per cent stake in Chrysler for $1.27bn, raising its total interest to 46 per cent from 30 per cent.
Chrysler was able to raise fresh funds despite having locked horns with its previous lenders in bankruptcy. Some loan investors argued that Chrysler, guided by the US government, failed to respect their priority claim, favouring unions instead in the bankruptcy settlements. A group of pension funds from Indiana opposed the deal at the Supreme Court… (more)
EDITOR: Irony here is that President Obama will likely be praised more for the killing of Osama Bin Laden that for saving the American auto industry.. and without costing the American tax payers a dime!
