Friday, September 4, 2009

Old Chrysler's costs outstrip assets

The portion of Chrysler LLC that remains in bankruptcy had costs of $10.2 billion in June, which is more than the amount the company was left with to cover the costs of liquidation.
The June operating report for Old Carco LLC, the name for the bankrupt pieces of the automaker, was filed with the New York bankruptcy court Friday. Chrysler LLC filed for bankruptcy April 30, and the choice assets were sold to a new entity, Chrysler Group LLC, which was formed in partnership with Fiat SpA on June 10.

Former Chief Financial Officer Ron Kolka was put in charge of winding down the assets of Old Carco, which contain seven assembly plants, almost 3,000 vehicles valued at $51 million and contracts with dealers and suppliers that were not transferred to the new Chrysler.--...More

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