Utilities Demand Payments from Chrysler

Commonwealth Edison, DTE Energy and MichCon are among the group of utility providers asking bankruptcy judge Arthur Gonzalez to force Chrysler into making $25 million in deposits to pay for past-due and future bills as it muddles through the bankruptcy process.

Chrysler’s attorneys last week had requested that the utility companies be restrained from shutting down services if Chrysler established a $6-million escrow account. Chrysler said in a filing that its average monthly utility bills for the 60-day bankruptcy period would be about $16.1 million.

Yesterday, the utility companies said the escrow account is not enough. DTE Energy alone said Chrysler owed it $6.5 million when it filed for bankruptcy April 30. DTE is asking Chrysler for a deposit of $18.5 million to cover the money it owed prior to the bankruptcy filing, and to sustain the automaker’s facilities during the proceedings. Duke Energy Indiana also asked for a $5.3-million deposit

Gonzalez will hold a hearing on the utility dispute Thursday.

Source: The Detroit Free Press


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