Chrysler CEO Bob Nardelli was publicly criticized for hopping a private jet to a congressional hearing for federal aid late last year but no Chrysler executive will be making that mistake in the near future. Chrysler has requested a bankruptcy court to terminate its leases on two corporate jets.
According to The Detroit News, Chrysler has asked a bankruptcy court to terminate its leases of a Gulfstream 450 and Gulfstream 550. The Gulfstream 450 is valued at $38 million and the 550 model at $55 million.
Chrysler currently holds a seven year lease for both planes, set to expire in 2015. Chrysler put down a $3.6 million security deposit on the Gulfstream 450 and a $5.3 million deposit on the Gulfstream 550. If Chrysler wins its case, those security deposits will be used towards its lease obligation.
Although Chrysler has halted the use of its corporate jets, the move to cancel the leases actually comes from a requirement by the U.S. and Canadian governments. In order to receive government funding for debtor-in-possession financing, Chrysler must terminate its entire corporate jet program.
