From Market Watch: Auto Makers to get more than $17 Billion in Loans
The White House announced plans Friday to extend $13.4 billion in loans to troubled Detroit auto makers, with another $4 billion likely available in February, citing the need to avoid "disorderly liquidation" during an already troubled economic period.
The deal could help General Motors Corp. and closely held Chrysler LLC avoid bankruptcy. The administration said the funds are contingent on the companies showing they're financially viable and competitive by the end of March -- otherwise they must pay back the loans in full.
The loans will be allocated from the $350 billion Troubled Assets Relief Program being managed by the U.S. Treasury Department, subject to approval of bank capital applications.
The White House announced plans Friday to extend $13.4 billion in loans to troubled Detroit auto makers, with another $4 billion likely available in February, citing the need to avoid "disorderly liquidation" during an already troubled economic period.
The deal could help General Motors Corp. and closely held Chrysler LLC avoid bankruptcy. The administration said the funds are contingent on the companies showing they're financially viable and competitive by the end of March -- otherwise they must pay back the loans in full.
The loans will be allocated from the $350 billion Troubled Assets Relief Program being managed by the U.S. Treasury Department, subject to approval of bank capital applications.
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