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

By Alice Popovici

New York, Nov. 12 - Old Carco, LLC, formerly Chrysler LLC, obtained approval to sell its assembly plant in Newark, Del., to the University of Delaware for $24.25 million, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the university was the only bidder to submit a firm offer 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.

Old Carco, an Auburn Hills, Mich.-based automotive company, filed for bankruptcy on April 30, 2009. Its Chapter 11 case number is 09-50002.

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