Chrysler has deal for plant in Delaware

Alisa Priddle / The Detroit News

Old Carco LLC, the estate of bankrupt Chrysler, is seeking court approval to sell the automaker's mothballed Newark, Del., SUV factory to the University of Delaware for $24.3 million.

The request, filed in bankruptcy court Friday, follows 18 months of trying to sell the property, which covers 271 acres and includes a parts depot plus the plant that churned out Dodge Durango and Chrysler Aspen SUVs until it closed in December.

Both sides are eager to complete the sale, and a hearing is set for Nov. 12. Chrysler asked the court to waive a 10-day appeal period so the deal can close immediately.

The property in New Castle County is across from the university's athletic fields and agricultural college farm and will be used to expand the school's 968-acre campus.

After Chrysler removes its equipment, the university will spend up to two years demolishing the facilities to create a research and technology campus as well as upgrade an Amtrak station on the site.

"The size of this parcel and its proximity to our main campus make this truly a once-in-a-lifetime opportunity for the University of Delaware," President Patrick Harker said in a statement.

Old Carco has seven plants to liquidate and this would be the first to be sold, a spokeswoman confirmed.

The estate must liquidate its assets to pay creditors and maintain the assets in the interim.

Newark's annual costs top $5 million, court documents reveal. Chrysler Group LLC, the company formed with Fiat SpA from old Chrysler's best assets, is bearing the cost through Oct. 31.

According to the purchase agreement signed Friday, the university will assume responsibility for any environmental expenses.

Old Carco hired UGL Equis Corp. to sell the property in May 2008, according to court papers.

Despite many interested parties, only the university submitted a formal offer, a development Old Carco tied to the poor economy and weak financing markets.