WE INVESTED IN GM AND CHRYSLER

[Boilers]

I think this is interesting read on how the Chrysler deal has left certain holding..

Old Chrysler loses $10.2 billion | Detroit Free Press | Freep.com

The old Chrysler -- made of the assets that remain in U.S. Bankruptcy Court -- lost $10.2 billion in June, according to an unaudited financial report filed Friday.

The size of the loss reflected the sale of the automaker's most-viable assets to Chrysler Group LLC, the new company created in the government-backed sale to investors led by Fiat.



When that sale closed June 10, the U.S. Treasury paid $2 billion to what is called Old Carco LLC, which owns seven plants that Fiat did not want included in Chrysler Group LLC. But Old Carco took a big loss on the deal.



Old Carco is also responsible for such liabilities as employees' wages at the properties it owns, as well as federal, state and local taxes, certain pension and restructuring liabilities.



For example, Old Carco paid $141.6 million in wages and $47.1 million in payroll taxes. For June, it also paid $55 million in federal income taxes, as well as $1.8 million to Michigan and $1.2 million to Ohio. Old Carco also paid $15 million to Capstone Advisory Group LLC, a valuation consultant that has worked with Chrysler since last November.



Since Chrysler filed for bankruptcy April 30, Old Carco has also paid $55 million to lawyers, financial advisers, investment bankers and accountants, according to the monthly operating report.



Separately, two pension funds and one construction fund managed by the State of Indiana are appealing again to the U.S. Supreme Court. They want an unspecified amount of money paid to them by Chrysler Group LLC owners, which include Fiat, the UAW and the U.S. and Canadian governments.



The Indiana funds purchased about $42 million of Chrysler's debt at deeply discounted prices before its April 30 bankruptcy filing.



Indiana State Treasurer Richard Mourdock declined to go along with other lenders who forgave $6.9 billion in loans in exchange for the $2 billion in cash from the U.S. Treasury.



Supreme Court Justice Ruth Bader Ginsburg in June chose not to review an appeal by these same funds of a lower court's ruling backing the sale.



Contact GREG GARDNER: 313-222-8762 or ggardner@freepress.com