hahahahahaha suckered again.
WASHINGTON, April 30 (Reuters) - The U.S. government will likely recover only a small portion of the $4 billion it loaned Chrysler LLC in December because of its mainly junior creditor status in bankruptcy, an Obama administration official said on Thursday.
"Among the stakeholders that will make sacrifices is the U.S. government," said the official after Chrysler filed for Chapter 11 bankruptcy protection in New York.
"Unfortunately, those loans were made to an overleveraged capital structure where (there) was probably never much hope of seeing much recovery," according to the the official, who asked not to be named.
The government does expect to eventually recoup the $1.5 billion it extended to Chrysler Financial, the company's lending arm, since that money is backed by auto loans.
The government also hopes to recover some of the $3.5 billion in bankruptcy financing it has pledged.
Terms for Chrysler's planned alliance with Italy's Fiat (FIA.MI) require repayment of U.S. Treasury debt if the Italian automaker eventually seeks to take control of Chrysler.
Fiat's initial stake will be 20 percent, but it can increase that to 35 percent through share purchases at fair market value. It can also buy shares from the U.S. or Canadian governments or the United Auto Workers (UAW) retiree health care trust, which will own 55 percent of the company.
The U.S. and Canadian governments hold a combined stake of 10 percent.
Separately, the Obama administration's task force responsible for restructuring efforts at Chrysler and General Motors Corp (GM.N) has begun the search for the four directors it will appoint.
"We intend to exercise that in a (commercial) way, using professional recruiters and look for senior experienced business people and industrialists and other people with relevant skills," the official said.
The official said the situation was unique since "there are a number of people who would not otherwise serve on a board who view this as a way to help their country and an important company at a time of need."
The board will eventually become independent.
President Barack Obama has said he wants the government to exit the auto business as quickly as possible once Chrysler and GM are on their feet and industry sales have rebounded.
Under a proposed GM plan, the government would own a combined 89 percent of the new company. (Reporting by John Crawley)
