Official: Chrysler to file for Chapter 11 bankruptcy.

Shy Guy · April 30, 2009

Following reports from late last night and early this morning that talks had broken down with lenders, Chrysler will officially announce its plan to file for Chapter 11 bankruptcy on Thursday. Negotiations between Chrysler [url=http://www.leftlanenews.com/official-chrysler-to-file-for-chapter-11-bankruptcy.html#][/url]and at least three lenders went on through the night, but no agreement was reached.

The news was revealed to Automotive News by an unnamed Obama administration official. The official said the Treasury Department upped its Chrysler debt-swap offer to $2.25 billion – up from $2 billion – but was unable to reach an agreement with the holdout creditors.

“While the Administration was willing to give the holdouts a final opportunity to do the right thing, the agreement of all other key stakeholders ensured that no hedge fund could have a veto over Chrysler’s future success,” the source told Automotive News.

Despite the pending Chapter 11 announcement, Chrysler is expected to forge ahead with an alliance with Fiat.

President Obama and his auto task force have scheduled a press conference for 12pm EST today, at which time the President will likely announce Chrysler’s Chapter 11 filing.

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Source: http://www.leftlanenews.com/official-chrysler-to-file-for-chapter-11-bankruptcy.html

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Hopefully they don't die out and Fiat won't screw them up.