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Former Chrysler bankruptcy moves forward

by David Zatz on

The old Chrysler, Old Carco or Chrysler LLC (as opposed to Chrysler Group LLC), has had its bankruptcy process moved forward as Judge Arthur Gonzalez approved the company’s disclosure statement and voting process for liquidation.

Michigan tax and environmental agencies are demanding priority, as the old company owes some taxes and $2.8 million in environmental remediation costs for numerous facilities including Trenton Engine, PROC, and Introl’s Dexter facility.

The old company has raised some funds, including $24 million from the University of Delaware for the Newark Assembly Plant and $91 million from Chrysler Group for 5,000 used company cars. (Over two thousand more are to be auctioned). The company sold two properties including a foundry in Indiana for around a half million dollars, and robots from Newark for another $284,000.

A large 1938-vintage building at 20250 Mt. Elliott was sold for just $2,000, possibly due to the need for repairs and cleanup.

Numerous properties are being separated from Old Carco, including the Venezuela subsidiaries, and several dealerships (Action, Des Plaines, Grapevine, Lone star, Long Beach, South Charlotte). These may be either abandoned or handled separately.

Old Carco still has numerous assets, including the Sterling Heights Assembly Plant, which could be purchased by the new company, though Sergio Marchionne recently implied that was very unlikely.

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