Judge OKs Use Of $4.96 Billion In Financing

By: Associated Press
By: Associated Press

New York (AP) -- A bankruptcy judge says Chrysler can use $4.96 billion in government loans for bankruptcy protection financing.

The financing is intended to keep the company running for the short term and create a bridge to the sale of Chrysler's most valuable assets to Italy's Fiat Group Spa.

U.S. Judge Arthur Gonzalez had given interim approval to the use of $4.1 billion in financing earlier this month.

But the automaker will now also receive $600 million to cover GMAC financial services losses related to Chrysler loans and $260 million related to Canadian government financing.

Gonzalez also says the Auburn, Mich.-based automaker can pay its dealers and essential suppliers for prebankruptcy obligations.

(Copyright 2009 by the Associated Press. All rights reserved.)

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