CNN announces that Chrysler LLC appears on the verge of bankruptcy. The falling auto maker was given a Thursday deadline to have a deal in place or file for bankruptcy. With the non bank lenders in discord with the terms of the proposed new agreement its pretty clear that Chrysleris expected to file for Chapter 11 protection later today.
Despite the filing, there is still belies that the company will not beliquidated, as bankruptcy is and the bankruptcy will pave the way for a merger with Italian car maker Fiat SpA.
President Obama said Wednesday that he was more hopeful than he had been a month ago that the bankruptcy would be swift and would result in a restructured company that is financially healthy. The new company would be controlled by the United Auto Workers union which will release there $7 billion stake in the company inreturn for %55 of Chrysler privately held stock, and Fiat.
