So FIAT has finally bought out the UAW shares to completely own Chrysler – Fiat Agrees To Buy Rest Of Chrysler From UAW Trust For $4.35 Billion.
No surprises here. Originally, the UAW-VEBA trust debt was $8 billion. Completely unsecured. That is until the Obama lawless bankruptcy team stepped in. While the first-line creditors got 29 cents on the dollar for their ‘secured’ debt, the UAW-VEBA actually ended up making money on the bankruptcy. So far, about a billion dollars at taxpayer expense. Heritage.org has the background here – http://www.heritage.org/research/reports/2012/06/auto-bailout-or-uaw-bailout-taxpayer-losses-came-from-subsidizing-union-compensation.
Take the FIAT $4.35 billion added to the $4.6 billion note (not including the 9% interest it’s earning) and you find that the UAW-VEBA made out just great to the tune of a $8.95 billion dollars. Not bad for a completely unsecured debt of $8 billion. Sure pays to have friends in high places and get paid back for supporting their political campaigns.
I’m sure that our Italian friends at FIAT as well as the UAW here at home would thank you the taxpayer over and over for your generosity. Probably about a billion times.