Chrysler to pay off fed loans

Sergio Marchionne, CEO of Fiat and Chrysler, said today Chrysler Group could repay $7.53 billion in debts to the U.S. and Canadian governments before the end of June.

"I think it's time to finally close the loop in an incredibly necessary intervention. We need to close that chapter," Marchionne told a group of reporters at Chrysler's Jefferson Avenue plant in Detroit. "I think it will be a great accomplishment if we can get it done two years after coming out of bankruptcy."

Chrysler emerged from bankruptcy in June 2009 under the management of Italy's Fiat S.p.A. The automaker took bailout loans from the U.S. government as well as the federal and provincial governments of Canada.

Chrysler Group LLC (“Chrysler Group”)  indens to repay in full the outstanding obligations under the loans provided to Chrysler Group by the U.S. Department of the Treasury and the Canadian federal and Ontario governments. Chrysler Group intends to complete the repayment during the second quarter of 2011 from proceeds of a new term loan facility and newly issued debt securities to be offered and sold to institutional investors in a private offering.

[Source; Chrysler, Automotive News, The Detroit News]