News/Case Summaries

AP Source: Chrysler nearing deal to refinance aid


April 26, 2011

A person briefed on the matter says Chrysler will make an announcement Thursday about refinancing its government loans.

The person says details are still being negotiated and the final deal likely will come Monday, when Chrysler releases its first-quarter earnings results. The person didn't want to be identified because Chrysler is still talking with banks.

Chrysler would refinance and repay $5 billion that it owes to the U.S. government and $1.6 billion that is owed to Canada. The governments loaned Chrysler the money to keep it alive and get it through a 2009 bankruptcy. Chrysler has been trying for months to refinance the loans, which have high interest rates and cost the automaker $1.2 billion in interest last year.

Chrysler's announcement will coincide with an appearance in Detroit by Treasury Secretary Timothy Geithner.

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