- May 5, 2009
REPORT: Chrysler unlikely to pay back most recent $4.5 billion gov't loan
In other related developments:
- Chrysler's salaried employees will be ordered to take a two-week unpaid furlough saving the company $21 million. Hourly workers are already on furlough.
- Incentive plans to dealers will be cut by 25 percent in May, and 50 percent in June.
- Chrysler is losing 30-40 dealerships per month. They now have fewer than 3,200.
- In papers filed last week, Chrysler expects the U.S. Treasury to forgive the $4 billion loan made in January.
- The company's biggest obstacle to making a speedy exit from bankruptcy court are the dissident creditors, holding $6.9 billion in first-lien debt.