Chrysler will be in default of the loans if its auto production in Canada falls below the 20-per-cent threshold, meaning the federal and Ontario governments can demand repayment.Yeah... like that's gonna happen.
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RELATED: Obama calls it a victory
Of course... it ain't comin' out of his bottom line...
Discussions between the U.S. Treasury Department and Chrysler's lenders were designed to reduce nearly $7 billion in secured debt, and avoid bankruptcy.*
But in the end, 40 hedge funds that hold roughly 30 per cent of Chrysler's debt refused to budge, said auto industry analyst Dimitry Anastakis.
"They're owed about $7 billion in total and the government is saying you should take about $2 billion of the $7 billion that you're owed, and they're refusing to do so," he told CTV's Canada AM.