Chrysler’s Estate Lost $12.1 Billion Since Bankruptcy
Sept. 21
Chrysler LLC’s old assets remaining in bankruptcy lost $12.1 billion in three months.
A report filed yesterday in Manhattan bankruptcy court shows a net loss of $344 million for the month ended July 31. Revenue of just $2 million was outweighed by $235 million in reorganization costs as the company, now known as Old Carco LLC, winds down what’s left of its assets following a sale.
Chrysler filed for bankruptcy April 30 and sold substantially all of its assets to a group led by Italy’s Fiat SpA in June, creating the world’s sixth-largest automaker.
“These entities are no longer engaged in any significant operations,” lawyers for the bankrupt estate said in court papers signed by Chief Executive Officer Ronald E. Kolka.
“The Fiat transaction resulted in a loss of $12.07 billion to the debtors,” the company said, adding that it continues to revise the loss amount recorded as of the transaction closing date of June 10.
According to the operating report, cost of sales was $11 million in July, and loss before reorganization costs was $20 million. Total current assets are $2.28 billion, and total current liabilities are $3.86 billion.
The three-month period since Chrysler’s bankruptcy filing also includes a $600 million gain from a settlement with the Pension Benefit Guarantee Corp. from June 5, under which Daimler agreed to assume the $600 million obligation owed by Chrysler.
The case is In re Old CarCo LLC f/k/a Chrysler LLC, 09- 50002, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
LINK:
Chrysler?s Estate Lost $12.1 Billion Since Bankruptcy (Update1) - Bloomberg.com
I read an Article that some private investors have been purchasing stock in the OLD Chrysler & GM (by mistake?) WOW what a great investment!
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