Chrysler Gets Temporary Financial Reprieve
Tuesday, May 5th, 2009Until their deal with Fiat has been closed, it looks like Chrysler has gotten some sort of a break as the U.S. Bankruptcy Court yesterday 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, 2009, in the U.S. Bankruptcy Court, Southern District of New York. The case number is 09-50002, with the Honorable Arthur J. Gonzalez presiding.
(Source) Press
Tags: bankruptcy court southern district of new york, business operations, case number, cash collateral, Chapter 11, Chrysler, course business, debtor in possession, Fiat, general business, interim approval, reprieve, working capital