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Former Chrysler loses $344 million in July

by Bill Cawthon on

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.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.


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