GMAC Financial Services President Bill Muir said Sunday that the number of Chrysler dealers expected to close because they don't qualify for new loans through the lender is likely to be small.

GMAC was designated the new finance company for Chrysler Group LLC dealers after the automaker filed for bankruptcy.

The Detroit News reported Saturday that some dealers said they had been told by GMAC and Chrysler officials that hundreds of dealers were at risk of not being able to finance with GMAC.

The U.S. Treasury Department, which provided loans to bankrupt Chrysler to continue operations, said the automaker's former captive finance company, Chrysler Financial, could no longer offer "floor plan" financing to Chrysler's 2,400 dealers. That's a line of credit dealers use to buy vehicles to stock their showrooms.

Instead, GMAC, which is technically a bank, was named the preferred lender and would provide floor plan financing, as well as consumer loans.

GMAC provided temporary floor plan loans, with the goal of approving by mid-November permanent loans to the 1,500 dealers who applied for them.

"Nearly 900 have completed the process to convert from the interim to post-interim wholesale credit lines," Muir said. "The vast majority of the remainder are approved, and GMAC is completing dealership visits and documentation to finalize the loans.

"It is possible that a select number may not qualify during this final step, but we expect the vast majority to be completed."

Muir said GMAC is "working aggressively" to support the Chrysler dealer body.

A central issue is who has first dibs on assets if a dealer goes under. Chrysler Financial still holds real estate or capital loans and GMAC holds floor plan debt.

Caught in this dilemma are Chrysler dealers who don't have enough equity in their business to pay off the old loans to Chrysler Financial and remove any obstacles to securing new loans from GMAC or another, independent source.

Without new money to buy vehicles, a dealer has little choice but to liquidate.

Some dealers have already closed because of this.

An additional 29 dealers representing 41 Chrysler stores have been sent letters saying they do not meet the necessary conditions to qualify for GMAC financing, largely because they lack sufficient collateral.

"These dealers have large real estate and working capital loans from Chrysler Financial that GMAC cannot refinance due to its lending guidelines and regulatory policies," Muir confirmed.

"GMAC is hopeful for a resolution to be able to provide wholesale financing to these dealers, as we want to continue our business relationship in support of their stores and their markets."