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UPDATE 1-Dollar Thrifty says exposure to Chrysler reduces

Wed Jun 10, 2009 5:17pm EDT

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June 10 (Reuters) - Car-rental company Dollar Thrifty Automotive Group Inc (DTG.N) said its credit exposure to Chrysler LLC has declined significantly due to payments received since the the carmaker's bankruptcy proceeding started.

The company said it expects its exposure to be fully honored and settled as certain of Chrysler LLC's liabilities are being assumed by the newly formed Chrysler Group LLC.

Dollar Thrifty's credit exposure to Chrysler is in the form of residual value guarantees, on program vehicles in the company's rental fleet and on program vehicles that had been previously returned to auction.

As of June 10, the exposure comprised $6.4 million in receivables under incentive and vehicle repurchase programs, and $23 million in residual value guarantees on about 3,600 vehicles currently in the company's rental fleet, Dollar Thrifty said.

Dollar Thrifty also confirmed that it does not have any material exposure to General Motors Corp GMGMQ.PK. (Reporting by Eric Yep in Bangalore; Editing by Deepak Kannan)



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