NEW YORK: Chrysler LLC said on Friday it has received an initial $4 billion emergency loan from the government.

"This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.

But Chrysler later said its statement that talks continue between the Treasury Department and Chrysler Financial about a loan should have been omitted. Its earlier press release said a closing was expected in due course.

Two spokeswomen for the company could not immediately be reached by Reuters to clarify.

General Motors Corp received $4 billion in emergency loans on December 31. Both Chrysler and GM have said they need the government cash to meet payouts to suppliers at a time when a plunge in auto sales has drained their cash holdings.

Under terms of the government bailout, Chrysler and GM will have to submit restructuring plans by mid-February and demonstrate that they are viable by the end of March.

 

Source : Reuters