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Chrysler LLC Receives Interim Approval for $4.1 Billion DIP Financing and Cash Collateral of $400 Million

Posted on: Tuesday, 5 May 2009, 10:55 CDT

AUBURN HILLS, Mich., May 5 /PRNewswire/ -- Chrysler LLC announced that the U.S. Bankruptcy Court yesterday gave interim approval to Chrysler for $4.1 billion of Debtor-In-Possession (DIP) financing, funded by the U.S. Treasury and Export Development Canada, and the use of $400 million of cash collateral, enabling the company to meet its working capital and general business needs going forward.

Approval of Chrysler's DIP financing provides the company with resources to continue "normal course" business operations pending approval of the sale transaction with Fiat.

The Chrysler Chapter 11 case was filed on April 30, 2009, in the U.S. Bankruptcy Court, Southern District of New York. The case number is 09-50002, with the Honorable Arthur J. Gonzalez presiding. More information about Chrysler's restructuring is available at http://www.chryslerrestructuring.com.

About Chrysler LLC

Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. Total sales worldwide in 2008 were 2 million vehicles. Outside of North America, 2008 was the second-best sales year in the last decade and the third-best ever for Chrysler International. Chrysler LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Wrangler and Grand Cherokee and Dodge Challenger and Ram. Reinforcing a commitment to bring to market a broad array of advanced electric vehicles across all its brands, Chrysler has introduced five electric-drive vehicle prototypes since the fall of 2008. At least one of these vehicles will be produced in 2010 for consumers in North American markets, with European market production later.

The Chrysler Foundation, the company's philanthropic arm, annually supports hundreds of charitable organizations in the United States and throughout the world. In 2008, the Foundation gave approximately $21 million in charitable donations.

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SOURCE Chrysler LLC

Source: PR Newswire

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