Canadian, Ontario governments provide financing, get 2 pct stake in retooled Chrysler Canada

Canadian governments to lend to Chrysler Canada

TORONTO — The Canadian and Ontario governments will jointly hold a 2 percent equity stake in a restructured Chrysler Canada and will lend about 3 billion Canadian dollars (US$2.42 billion) to help the beleaguered company while it is in bankruptcy proceedings.

Prime Minister Stephen Harper’s office said Thursday that the loan will cover debtor-in-possession financing and exit financing needed when the automaker emerges from court protection.

It was disclosed Thursday that Chrysler Canada’s parent company would file for bankruptcy protection after talks with a small group of creditors crumbled a day before a government deadline for the automaker to come up with a restructuring plan.