Former Chrysler loses $344 million in July

Old Carco, LLC, the company formed to manage and liquidate the assets abandoned after the formation of Chrysler Group LLC, lost $344 million in July, according to a filing in New York bankruptcy court. It reported about $2 million in revenue, mostly from charges to the new Chrysler Group for operating facilities licensed to the new company.

The liquidation operation, headed by Ron Kolka, former chief financial officer of the bankrupt Chrysler LLC, has now lost $12.1 billion in value in three months and is in default on a $3.4 billion federal loan and a $57 million interest payment that came due in mid-August. Because of the default, the company can now no longer borrow.

As of the filing, Old Carco LLC had assets of $2.2 billion and liabilities of $20.6 billion meaning unsecured creditors are likely to receive just pennies on the dollar for their claims.