Chrysler Financial has been denied an additional $750 million in Federal bailout loans because top executives there refused to sign documents that could place limits on their own salaries, according to The New York Times and Washington Post.

The Detroit Freepress cited a report issued by the special inspector general’s office responsible for overseeing how rescue funds are used by automakers, where it was revealed that at least some of the carmaker’s financing operation’s top-25 executives chose not to sign waivers that would have released the Treasury department and Chrysler from legal responsibility for salary caps.  

Chrysler Financial has already received $1.5 billion in Federal aid, which is in addition to the $4 billion the carmaker has received since December.  

Chrysler Financial said in a statement it did not need the additional federal funding, and it would use private capital to cover operating expenses instead.

Adding to Chrysler’s woes, workers at Chrysler minivan plants in Canada burned copies of a letter from Thomas W. LaSorda, Chrysler president and vice chairman, warning that Chrysler would pull out of Canada if Canadian Auto Workers union members did not agree to further concessions. 

Fiat has said that unions in both the U.S. and Canada must agree to more cuts before the Italian carmaker is willing to form a partnership with Chrysler. Such an alliance is seen as being critical to Chrysler’s survival.

With these and other developments, the Chrysler drama drags on. We will continue to watch with great interest as the company counts down to the April 30th deadline for partnering with Fiat. (Read: “Obama: Chrysler, GM plans inadequate, demands further restructuring.”)

—Jim Travers