Obama officials: Chrysler to succumb to bankruptcy

2009-04-30 15:01:33 (GMT) (Caymanmama.com - Automotive Business News)

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2005-present Chrysler 300

Two Obama administration officials have informally said that Chrysler’s plan to file for bankruptcy protection is imminent.

Chicago, Illinois (CaymanMama.com) –Business is not going well for two of the nation’s biggest automakers.

Aside from the highly publicized struggles of General Motors Corp., two Obama administration officials have informally said that Chrysler’s plan to file for bankruptcy protection is imminent.

The sources said that this decision transpired after discussions broke down with a group of Chrysler’s creditors.

The sources spoke on condition of anonymity since the filing plan has not been formally announced.

The government had long hoped that Chrysler could avoid filing for bankruptcy protection, however negotiations with hedge funds that retain its staggering about of debt crumbled quickly.

According to the Associated Press, “Bankruptcy doesn’t mean the nation’s third largest automaker will shut down. And Chrysler is expected to sign a partnership with the Italian company Fiat as early as today as part of its restructuring plan.”

President Barack Obama will discuss the country’s automotive sector at noon on Thursday.



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