Chrysler Financial to liquidate by end of 2011, U.S. says

October 23, 2009 http://detnews.com/article/20091023/AUTO01/910230354

Chrysler Financial to liquidate by end of 2011, U.S. says

DAVID SHEPARDSON AND ALISA PRIDDLE
The Detroit News

Washington — The Treasury Department said Thursday that Chrysler Financial is working to close its doors by the end of 2011.

"Chrysler Financial is currently following Treasury’s directive to liquidate its business in an orderly fashion," said Kenneth Feinberg, the Treasury’s special master overseeing pay for top executives at the seven firms that received government bailouts.

"Chrysler Financial is currently pursuing a successful wind down of its operations by Dec. 31, 2011," Feinberg states in a document to Chrysler Financial dated Thursday.

Late Thursday, the Treasury issued a statement emphasizing the company is still a going concern — but didn’t back away from its statement that Chrysler Financial would liquidate within 26 months.

"Chrysler Financial will continue to service its obligations to its existing lenders as required by its outstanding loan agreements," Treasury spokeswoman Meg Reilly said.

Cerberus Capital Management LP officials, however, said they were unaware of any liquidation orders and that closing isn’t part of their business plan.

"We state (the planned liquidation) as the current aspiration, not a plan that is set in stone, and we drew that conclusion from the company’s submissions and our discussions," said a Treasury official who asked not to be identified.

Chrysler Financial spokeswoman Amber Gowen did not comment.

Chrysler Group LLC had no comment.

Chrysler Financial is paying proportionally more than other financial institutions, Feinberg said.

Chrysler Financial will pay its top executive $1.5 million; $1.35 million will go to a second executive. Two others will receive $800,000 and $600,000. The remaining top 21 will make no more than $500,000.

apriddle@detnews.com">apriddle@detnews.com (313) 222-2504


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