Chrysler has asked a federal bankruptcy court to approve a sale of its shuttered Newark, Delaware, plant to the University of Delaware for $24.25 million.
A hearing in bankruptcy court in Manhattan before Judge Arthur Gonzalez is scheduled for Nov. 12 on the proposed sale, which would mark the first time a major deal has been clinched by the company managing Chrysler’s assets stranded in bankruptcy.
“While other parties have continued to express interest in the property, no party has actually come forward with a higher and better offer,” attorney’s representing the Chrysler bankruptcy estate said in a court filing.
The University of Delaware, which hopes to use the 270-acre (109 hectare) site of the former Chrysler plant to expand its campus, set up a Web page on Tuesday to provide information to companies interested in bidding to provide salvage and clean-up services for the plant.
Chrysler and the University of Delaware have been negotiating a potential sale of the property since late last year. The brief seeking court approval for the sale was filed on Friday.
Chrysler’s shuttered Delaware plant once produced SUVs such as the Dodge Durango and the Chrysler Aspen. The facility was one of the assets stranded in Chrysler’s continuing bankruptcy in a process managed by Old Carco LLC.
Chrysler’s most valuable assets have been sold to a new entity under the management control of Fiat SpA (FIA.MI) in a deal brokered by the Obama administration.
Under the proposed transaction, the university would pay $24.25 million to Old Carco, including a $2 million deposit. In addition, the university would take on the property without any additional environmental remediation by the company.