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Author Topic: Old Chrysler loses billions  (Read 123 times)
hemiram
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« on: September 05, 2009 »

Old Chrylser, made of the assets that remain in U.S. Bankruptcy Court -- lost $10.2 billion in June, according to an unaudited financial report filed Friday. 

The size of the loss reflected the sale of the automaker's most-viable assets to Chrysler Group LLC, the new company created in the government-backed sale to investors led by Fiat.

When that sale closed June 10, the U.S. Treasury paid $2 billion to what is called Old Carco LLC, which owns seven plants that Fiat did not want included in Chrysler Group LLC. But Old Carco took a big loss on the deal.

Old Carco is also responsible for such liabilities as employees' wages at the properties it owns, as well as federal, state and local taxes, certain pension and restructuring liabilities.

Read the rest at Freep
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