Old Chrysler requests approval of $24.25 million sale of Newark plant

By Angela McDaniels

Tacoma, Wash., Oct. 23 - Old Carco LLC, formerly Chrysler LLC, is seeking court permission to sell its assembly plant in Newark, Delaware, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The University of Delaware has agreed to buy the plant for $24.25 million. It was the only party to submit a firm offer for the property by the deadline.

The property is pledged as collateral to secure the company's first-lien credit agreement. Old Carco said that according to the first-lien agent, the first-lien lenders have consented to the sale of the property.

A hearing is scheduled for Nov. 12.

Old Carco, an Auburn Hills, Mich.-based automotive company, filed for bankruptcy on April 30. Its Chapter 11 case number is 09-50002.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.