Bush announces bailout
Posted on December 19th, 2008 • by Bill Cawthon
President George Bush has announced a $17.4 billion loan program to rescue Chrysler and General Motors. $13.4 billion would be available now and $4 billion more would be available in February. The funds will come from the Troubled Assets Relief Program (TARP) originally earmarked to assist the financial markets.
The loans will come with most of the strings that were contained in the legislation that failed to pass in the Senate.
The automakers will have three months to provide a restructuring plan to ensure future viability. If the automakers fail to come up with a plan by March 31, they will have to repay the loans.
The Administration ruled out a pre-packaged Chapter 11 bankruptcy, saying an orderly bankruptcy was an unlikely outcome.
Like on Facebook • Tags: bailout, bankruptcy, Chrysler, loans.
