Chrysler hopes to buy one plant, sell another

Chrysler Group received a two-week extension from the city of Sterling Heights to complete a purchase of the Sterling Heights Assembly Plant (SHAP) from Old CarCo. The automaker had been given a deadline of February 16 to complete the purchase and qualify for $8.2 million in tax abatements but requested the extra time due to the complexity of the deal. The new deadline is March 2, 2010.

It looks like Old CarCo will get to sell another plant. Twinsburg Industrial Park, LLC (TIP), a Cleveland, Ohio-based consortium, has offered $27.5 million for the two-million-square-foot Twinsburg Stamping Plant. The court approved the sale on February 12 and TIP has tendered a $2.75 million deposit. The TIP offer was the only one of seven offers received that proceeded to a sale document.

The sale won’t be finalized until March 12 and there is still a possibility that other offers could emerge. There is a March 5 deadline for competing offers, which must be at least $750,000 higher than the TIP offer. If more offers are received, an auction would be held March 10.

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