Canada Government Mulls DIP Financing For Chrysler, GM
23 April 2009 - 10:53PM
Dow Jones News
The Canadian government is considering the possibility of
extending debtor-in-possession financing to Chrysler LLC and
General Motors Corp. if they seek bankruptcy protection, Industry
Minister Tony Clement said Thursday.
"That is a bridge that we have not crossed yet. But obviously we
are looking at all the permutations and combinations," Clement told
reporters after Question Period in the House of Commons.
He also said Chrysler and the Canadian Auto Workers have made
progress on talks for the labor union to make concessions on
pay.
He said many other pieces must fall into place for a
restructuring plan that goes far enough to qualify for government
aid, so he's sticking with the month-end deadline to see how things
are likely to go.
"That's why I think we should concentrate on the April 30 date
as the most probable and reasonable to get all of this together or
not," he said.
-Nirmala Menon, Dow Jones Newswires; 613-237-0668;
nirmala.menon@dowjones.com