VH_Supra26
06-27-2008, 11:42 AM
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Chrysler has denied rumors it was planning to file for bankruptcy protection and confirmed it has sufficient cash reserves to maintain its operations into the perceivable future. The initial speculation that bankruptcy could be on the horizon for the Auburn Hills carmaker came after the announcement of a $2 billion line of credit from new owners Cerberus Capital Management and former parent Daimler.
However, under the terms of the original DaimlerChrysler split, Chrysler had until August to draw on the credit line, which included $1.5 billion from Daimler.
A spokesman for Chrysler said today that market rumors of a bankruptcy filing by the privately held automaker were “without merit,” saying the company had ample liquidity, reports Automotive News. Despite losing $1.6 billion in 2007, Chrysler also confirmed that it had ended the year with $9 billion in cash.
Chrysler’s sales in the U.S. have dropped 23% compared with levels from just one year ago and analyst companies such as Fitch Ratings have since downgraded their ratings for the carmaker. This also played a major role in creating speculation that Chrysler could go bankrupt.
http://www.motorauthority.com/cars/chrysler/chrysler-denies-bankruptcy-rumors/
Chrysler has denied rumors it was planning to file for bankruptcy protection and confirmed it has sufficient cash reserves to maintain its operations into the perceivable future. The initial speculation that bankruptcy could be on the horizon for the Auburn Hills carmaker came after the announcement of a $2 billion line of credit from new owners Cerberus Capital Management and former parent Daimler.
However, under the terms of the original DaimlerChrysler split, Chrysler had until August to draw on the credit line, which included $1.5 billion from Daimler.
A spokesman for Chrysler said today that market rumors of a bankruptcy filing by the privately held automaker were “without merit,” saying the company had ample liquidity, reports Automotive News. Despite losing $1.6 billion in 2007, Chrysler also confirmed that it had ended the year with $9 billion in cash.
Chrysler’s sales in the U.S. have dropped 23% compared with levels from just one year ago and analyst companies such as Fitch Ratings have since downgraded their ratings for the carmaker. This also played a major role in creating speculation that Chrysler could go bankrupt.
http://www.motorauthority.com/cars/chrysler/chrysler-denies-bankruptcy-rumors/