In a Monday statement, the US Treasury Department disclosed that Chrysler Holding, the parent company of the automaker Chrysler LLC, had made a loan repayment of $1.9 billion last year, towards the settlement of a loan that had been extended for settling the financial-services business of the company.

Revealing that a $4 billion loan was extended to the automaker, which filed for bankruptcy in April last year, on January 2, 2009; the Treasury acknowledged in its statement that the loan repayment amount was "significantly more" than the department expected.

The Treasury statement read thus: "This ($1.9 billion) repayment, while less than face value, is significantly more than the Treasury expected to recover on this loan, and is greater than an independent valuation of the loan."

As per the Treasury statement, the loan amount went into default once Chrysler LLC - which the Treasury Department refers to as "Old Chrysler" - filed for bankruptcy. The loan amount was further reduced by $500 million after the assets of "Old Chrysler" were sold to the new company - Chrysler Group LLC - in June.

The Treasury also added that the liquidation of the bankrupt automaker did not result in recovery of the debt. Moreover, since Chrysler Holding has no ownership stake in the reorganized Chrysler Group LLC, the investments in that entity largely remain unaffected by the loan repayment.