On the wire (abridged):
Chrysler will soon get new federal loans to help retool factories to make more fuel efficient vehicles, according to sources familiar with the matter.
The timing of the Energy Department award to Chrysler is fluid, but sources with knowledge of the financing and the industry say the automaker will likely receive approval for new credit before General Motors Co GM.UL.
For Chrysler specifically, Energy Department financing would improve cash flow and enable it to accelerate payment of some $7 billion in pricey government loans extended as part of bankruptcy. Terms are steep for Treasury financing as lender of last resort. According to its August financial update, Chrysler still owes the Treasury $5.7 billion. The interest rates on that debt range from 7.22 percent to 14.33 percent.
Gotta love this. Chrysler (Fiat) is essentially arbing the government. Good times, good times.
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