AUBURN HILLS – Chrysler LLC announced that
the U.S. Bankruptcy Court Wednesday gave interim approval to Chrysler for
$4.1 billion of Debtor-In-Possession (DIP) financing, funded by the U.S.
Treasury and Export Development Canada, and the use of $400 million of cash
collateral, enabling the company to meet its working capital and general
business needs going forward.
Approval of Chrysler’s DIP financing provides the company with
resources to continue normal course business operations pending approval
of the sale transaction with Fiat.
The Chrysler Chapter 11 case was filed on April 30 in the U.S.
Bankruptcy Court, Southern District of New York. The case number is
09-50002, with the Honorable Arthur J. Gonzalez presiding.
Chrysler LLC, headquartered in Auburn Hills, produces Chrysler,
Jeep, Dodge and Mopar brand vehicles and products. Total sales
worldwide in 2008 were 2 million vehicles. Outside of North America, 2008
was the second-best sales year in the last decade and the third-best ever
for Chrysler International.
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