The assets Chrysler LLC left behind in bankruptcy court lost $344 million in July, the first full month since the automaker closed the sale of most of its operational assets to Fiat SpA.
The July loss, disclosed in a filing with the U.S. Bankruptcy Court for the Southern District of New York in Manhattan last week, was down sharply from a $10.2 billion loss in June. Chrysler on June 10 closed the U.S. Treasury-financed sale of its assets to Chrysler Group LLC, an entity formed during the bankruptcy. Fiat owns 20% of the new company (with the right to increase its holding to 51% over the next seven years), the UAW's VEBA trust owns 67.69%, while the U.S. and Canadian governments own 9.15% and 3.16%, respectively.
Though the company left behind in bankruptcy -- Old Carco LLC -- reported only $2 million in revenue for July, a $2 billion payment from the U.S. Treasury as part of the Fiat deal mitigated a larger loss. Old Carco, which owns at least eight factories that it licenses to Chrysler Group, plans to sell assets over the next few months. - John Blakeley
Also see:
Lehman, Chrysler, GM: The fallout
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