US Stiffed For TARP Cash In Chrysler Plan

Law360, New York (December 15, 2009, 7:28 PM EST) -- Old Carco LLC, the liquidation vehicle formed from the wreckage of Chrysler LLC, will not repay a $4 billion U.S. government loan extended to its predecessor under the Troubled Asset Relief Program, the company said in a proposed Chapter 11 plan.

“No property will be distributed to holders of allowed TARP financing claims,” Old Carco said in a disclosure statement filed Tuesday in the U.S. Bankruptcy Court for the Southern District of New York.

The statement provides a plan for the wind-down of Old Carco, the...
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