[Posted on June 26, 2008 at 3:02 PM]
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Filed under: Autos | Bankruptcy | Distressed

Chrysler LLC is denying rumors that it may file for Chapter 11. A spokesman for the privately held automaker told Reuters that the rumors were "without merit." He also said that the company had ample liquidity.

There have been rumors that the company may not have enough liquidity due to the downturn in auto sales, the oil spike and the credit crunch. Cerberus Capital Management LP borrowed $7 billion to take an 80% stake in an ailing Chrysler from German automaker Daimler, and now has the difficult task of turning around an automaker amidst an oil spike wrapped in a credit crunch.

Daimler reported that Chrysler lost $2.9 billion from when Cerberus bought the stake on Aug. 4. Chrysler under Cerberus has been guarded in releasing financial information, but Cerberus has said the company was exceeding most of its financial targets. - Maria Woehr

Tags:

• bankruptcy
• Cerberus Capital Management
• Chrysler
• Daimler

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