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NEW YORK — Chrysler LLC on Friday said it began to notify the 1,200 suppliers it plans to pay for claims that predate the automaker's bankruptcy protection filing.
In a court filing, Chrysler disclosed an initial list of the affected suppliers and the "cure costs" it believes they are entitled to. Contracts with those suppliers are expected to transfer over to the new company set to be created by the sale of most of Chrysler's assets to Italy's Fiat Group SpA.
But Chrysler said the list is not final and that it would continue to work with other suppliers who want to do business with the new company.
Suppliers with the largest payments coming to them include Germany's Continental AG and Milwaukee-based Johnson Controls Inc., which are both due to receive about $70 million, along with Canada's Magna International Inc., which is slated to get just over $63 million.
The suppliers are expected to receive 40 percent to 50 percent of the total amount they are owed in installments over the next several weeks, with the rest expected to come after the sale with Fiat closes, Chrysler officials said.
Chrysler said it will try to reach out-out-court settlements with suppliers who disagree on the amount owed to them. U.S. Judge Arthur Gonzalez will hear formal objections at the automaker's June 4 court hearing.
