Magna To Get $64 Million From Chrysler Filing

Chrysler court filing indicates about $64 million owed to supplier Magna International would be honored by automaker's successor after bankruptcy restructuring.

TORONTO (CP) -- A Chrysler court filing indicates about US$64 million owed to supplier Magna International Inc. would be honoured by the automaker's successor after its bankruptcy restructuring.

The list of designated supplier agreements and cure costs submitted to U.S. Bankruptcy Court in New York lists 23 amounts due to Magna, ranging up to $28.3 million.

Magna disclosed in its first-quarter report May 6 that it had $282 million in receivables related to Chrysler at March 31.

Officials of the parts producer, headquartered north of Toronto, did not immediately comment Friday on how much stands to be recovered in light of Chrysler's latest filing.

Chrysler, which was granted bankruptcy protection from creditors in the United States on April 30, represented $388 million of Magna's first-quarter sales, about 11 per cent of its total business.

In addition to the $64 million in specified Magna-related amounts to be assumed by the combined Chrysler-Fiat entity contemplated in the restructuring plan, Chrysler listed three Magna purchase orders which are to be excluded. Their value was not specified.

A letter to suppliers from Chrysler's chief procurement officer, Scott Garberding, noted that the assignment notice is not complete, but the automaker "has asked that such counterparties accept its estimate of the amounts owed them by Chrysler."

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