Sunday, January 4, 2009

Chrysler gets $4-billion loan from US govt

Chrysler LLC said on Friday it has received an initial $4 billion emergency loan from the US government.

"This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.

But Chrysler later said its statement that talks continue between the US Treasury Department and Chrysler Financial about a loan should have been omitted.

Its earlier press release said a closing was expected in due course.

Two spokeswomen for the company could not immediately be reached by the media to clarify.

General Motors Corp received $4 billion in emergency loans on December 31.

Both Chrysler and GM have said they need the government cash to meet payouts to suppliers at a time when a plunge in auto sales has drained their cash holdings.

Under terms of the government bailout, Chrysler and GM will have to submit restructuring plans by mid-February and demonstrate that they are viable by the end of March.

Source: Agencies

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