The company Cerberus owned 81% of the company, was owed $500M, and owned the Chrysler Building. They lose everything in the bankruptcy. They get repaid zero. They even lose the building.
The company Daimler that used to own Chrysler is owed another $1.5B. They get repaid zero.
Banks are owed $6.9B. They get $2B, 29 cents on the dollar.
The US government has put in $4.3B from the TARP bailout. They are also owed $300M in fees. This was supposed to be a great investment Chrysler would repay with interest. What do we get on our investment? Zero. No, worse than zero. We will give them another $3.2B in the restructuring and another $4.7B later.
The United Auto Workers has $10.6B in Chrysler debt. Remember from my last note that this is unsecured debt; they are only supposed to get what's left over after the secured debt is FULLY repaid. So, what do they get? A note for $4.6B (at 9% interest!), or 43 cents on the dollar, more than anybody else. Plus - and a big plus - they get 55% of the equity of the company. They went from not actually owning anything, and being last in line for repayment, to owning 55% of the company. Oh, and they also get $600M in "legacy costs", for stuff like pension and healthcare benefits, from Daimler.
Guess what? The "Car Czar", Steve Rattner, was Finance Chair for the Democratic National Committee. And guess what else? The UAW gives 99% of their political contributions to the DNC. Makes things clearer, doesn't it?