Old Chrysler defaults on DIP loan, posts $10.23 billion June net loss

By Caroline Salls

Pittsburgh, Sept. 4 - Old Carco LLC, formerly Chrysler LLC, said it has received a notice of default from the U.S. Department of the Treasury for failing to repay its debtor-in-possession facility when it matured on June 30, according to an operating report filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the DIP facility provides up to $4.96 billion of financing, consisting of a $3.8 billion note payable to the U.S. Treasury and a $1.16 billion note payable to Export Development Canada.

The DIP agreement also calls for an additional $253 million note payable to the U.S. Treasury and an additional $77 million payable to Export Development Canada.

Old Carco said it is in negotiations with its official committee of unsecured creditors and the Treasury to address the default notice.

In addition, Old Carco reported a $10.227 billion consolidated net loss for June on $4 million in revenues.

The company had $183 million of cash and cash equivalents at June 30.

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

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