Chrysler will repay all outstanding loans from the US and Canadian governments sometime during the second quarter of this year, the company said this morning.
Of the original $9.6 billion loan package, Chrysler now owes the US Treasury $5.8 billion and the Canadian and Ontario governments $1.7 billion since the Detroit automaker filed for bankruptcy in May 2009. The loans were not due until 2017.
Earlier this month, Fiat raised its ownership stake from 25 to 30 percent. The U.S. Treasury now owns 8.6 percent and the Canadian governments 2.2 percent. The United Auto Workers has the controlling 59.2 percent.
The company said it will seek to refinance its remaining debt this quarter. Fiat has already committed $1.27 billion to buy an additional 16 percent stake, as per the conditions of the government loans. After the loans are paid, both US and Canadian governments will continue to own their respective shares at least until Chrysler files for an initial public offering, the company said.
More details will follow when Fiat and Chrysler CEO Sergio Marchionne and Treasury Secretary Timothy Geithner speak during a press conference later this afternoon.
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About Boston Overdrive
|Clifford Atiyeh is an automotive writer and car enthusiast . He has spent his entire life driving cars he doesn't own.
In the garage: 1995 21-speed Iron Horse, 2002 Jeep Wrangler X (by association)
|Bill Griffith is a veteran Boston Globe reporter, having reviewed cars for more than 10 years and serving as assistant sports editor for 25 years. He was also the paper's sports media columnist.
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|John Paul is public affairs manager for AAA Southern New England, a certified mechanic, and a Globe columnist. He hosts a weekly radio show on WROL.
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|Craig Fitzgerald has been writing about cars, motorcycles, and the automotive industry since 1999. He is the former editor of Hemmings Sports & Exotic Car.
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|George Kennedy is a senior writer for WheelsTV in Acton, which produces video reviews for Yahoo, MSN, and other auto websites.
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