Briefcase

Chrysler nearing deal to repay bailouts

DETROIT – Chrysler is close to repaying its government bailouts.

The company has lined up investors to help it refinance $7.5 billion in loans from the U.S. and Canadian governments, three people briefed on the matter said Wednesday.

Under the deal, the company would take out $2.5 billion in bank loans and sell $3.5 billion worth of bonds to investors. Italy’s Fiat, which has management control of Chrysler, would kick in $1.3 billion more to raise its stake in the U.S. carmaker.

Details of the financing package are still being worked out.

Chrysler took $10.5 billion from the U.S. government to survive two years ago, and it has repaid some of the money. The refinancing will allow Chrysler Group LLC to retire the remaining $5.9 billion balance on the loans, in addition to paying $1.6 billion to the governments of Canada and Ontario.

Associated Press

Enron mastermind in halfway house

HOUSTON – Andrew Fastow, the mastermind behind financial schemes that doomed Enron Corp., returned to Houston this week to serve the remainder of his six-year sentence at a halfway house, a federal prison official said Wednesday.

Fastow, 49, the former chief financial officer for Enron, was sentenced in 2006 after admitting to running various schemes to hide Enron debt and inflate profits while enriching himself. He pleaded guilty to two counts of conspiracy as part of a plea agreement with prosecutors.

Enron crumbled into bankruptcy in December 2001 after years of accounting tricks could no longer hide billions in debt or make failing ventures appear profitable.

Associated Press

CEO’s ‘retention award’ could hit $23.4 million

NEW YORK – Citigroup Inc. awarded its CEO a multiyear bonus package that could be worth nearly $23.4 million if the bank meets a series of performance goals, the New York bank said Wednesday.

In a regulatory filing detailing the so-called “retention award” to CEO Vikram Pandit, Citigroup said the package is designed with a mix of short-, medium- and long-term goals aimed at creating shareholder value and managing risk.

The first part of the award was made in deferred stock valued at $10 million on Tuesday, the day it was granted. Pandit will receive the stock in three equal installments at the end of 2013, 2104 and 2015, but only if the board finds that he has met certain performance objectives.

Associated Press

Chevy Volt factory to expand production

DETROIT – General Motors will reconfigure the plant that makes the Chevrolet Volt to expand production to up to 60,000 electric cars a year.

The Detroit-area factory, which will be shut next month, now can produce about 16,000 a year.

GM said the electric car will be in short supply for the next three months because of the four-week shutdown that begins in June.

The Volt can run on battery power for about 35 miles before a gas-powered motor kicks in to generate electricity. It can be recharged through a home electrical outlet. The car costs just over $40,000 but is eligible for a $7,500 tax credit.

Associated Press