WASHINGTON (CN) – The United States government has sold its remaining shares in the Chrysler Group LLC to Fiat for $560 million, ending the government’s investment under the Troubled Asset Relief Program, the Treasury announced Thursday.
The $560 million includes $60 million for shares owned by the United Auto Workers retirement trust fund.
Chrysler, once one of the so-called “big three” in auto manufacturing, was facing possible liquidation when it filed for bankruptcy in 2009 when the U.S. government extended up to $12.5 billion in loans through the Troubled Asset Relief Program’s Automotive Industry Financing Program.
During bankruptcy reorganization, the company was split into two companies -Chrysler Group, which is now controlled by Fiat, and Old Carco LLC which retained few assets and most of the debts of the old Chrysler.
Chrysler repaid the remaining $5.1 billion in TARP loans and terminated its ability to draw from the remaining $2.1 billion TARP loan commitment, in May of this year.
Chrysler repaid its TARP loans six years ahead of schedule, and to date the government has returned $11.1 billion of the initial TARP loan commitment.
Neither the Treasury Department nor private creditors expect to recover the remaining $1.3 billion owed by the Old Carco LLC.