UPDATE 1-Dollar Thrifty says has credit exposure to Chrysler

miércoles 22 de abril de 2009 22:21 CEST
 

* Says has exposure for residual value guarantees

* Says has no exposure to GM

April 22 (Reuters) - Car-rental company Dollar Thrifty Automotive Group Inc DTG.N said it has potential credit exposure to Chrysler [CBS.UL] but none to General Motors (GM.N: Cotización).

Dollar Thrifty said it has about $23 million in estimated exposure to Chrysler, its principal supplier, for residual value guarantees on about 3,600 program vehicles currently in its rental fleet.

These vehicles are subject to return to auction in the third and fourth quarters of 2009, the company said.

"In the event of a Chrysler bankruptcy, the company has the ability to extend the holding period of these vehicles by converting them to risk vehicles," Dollar Thrifty said.

The company said its exposure to Chrysler includes about $11 million in trade receivables from Chrysler under incentive and vehicle repurchase programs.

The company said it has reduced its exposure to Chrysler from over $215 million as of Dec 31, 2008 to a more manageable level and expects additional reductions going forward.

Dollar Thrifty shares closed up 11 percent at $1.99 Wednesday on the New York Stock Exchange. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Himani Sarkar)