Chrysler files for bankruptcy protection
WASHINGTON (AP) — Chrysler has filed for bankruptcy after talks with a small group of creditors crumbled just a day before a government deadline for the automaker to come up with a restructuring plan, two administration officials said today.
The Obama administration had long hoped to stave off bankruptcy for Chrysler LLC, but it became clear that a holdout group wouldn’t budge on proposals to reduce Chrysler’s $6.9 billion in secured debt, according to the officials, who spoke on condition of anonymity because the filing plans are not public.
Clearing those debts was a needed step for a Chrysler restructure by tonight’s deadline.
The Chapter 11 bankruptcy filing doesn’t mean the nation’s third- largest automaker will shut down. And the privately held Chrysler is expected to sign a partnership agreement with the Italian company Fiat as early as today as part of its restructuring plan. The bankruptcy filing would allow a judge to decide how much the company’s creditors would get.
For the complete story, see Thursday’s Vindicator and Vindy.com