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Frankfurt:
DaimlerChrysler will use the repayment of intercompany
loans to reduce its debt substantially after the closure
of the sale of its US arm Chrysler, the German automaker''s
chief financial officer Bodo Uebber has been quoted
by a German newspaper.
The
group will also stop issuing bonds and commercial paper
in the quarters ahead, he said in an interview. He said
that the German auto maker would pay inter company loans
of around $36 billion when the deal closes.
Last
week US private equity firm Cerberus Capital Management
was named the buyer of a majority stake in Chrysler.
Uebber
told the paper, "Based on the favorable maturity
structure for bonds, bank loans and commercial paper,
Daimler will reduce the debt that is no longer needed
to around 10 billion euros by September 2007.
"In addition, bonds that mature in the fourth quarter
of 2007 and the first quarter of 2008 will not be replaced.
Then Daimler will have no more excess debt on its books
by the second quarter of 2008."
Asked
what this meant for debt issues, he said: "We will
not issue bonds or commercial paper in the quarters
ahead."
The
company plans to change its name to Daimler AG once
the Chrysler sale goes through. It expects to close
the deal in the third quarter of this year.
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