Judge approves $4.5 bln loan for Chrysler as it seeks to exit bankruptcy

A federal bankruptcy judge has approved debtor in possession financing worth $4.5 billion for Chrysler LLC, allowing the company to continue operating as it looks to finish an auction of its assets to a new entity.

U.S. Bankruptcy Judge Arthur Gonzalez approved the financing at a hearing in Manhattan today, according to Bloomberg.

Chrysler will be able to borrow as much as $1.8 billion of the funds on an interim basis, court papers say, according to the report.

The court has yet to rule on the rules for the assets auction.