US Treasury preparing for Chrysler Chapter 11 filing
April 24, 2009 by Matt Brogan
With the deadline for the Fiat-Chrysler merger just one week away, a move Fiat still insists will happen, the US Treasury department is apparently preparing for a Chapter 11 bankruptcy filing for Chrysler.
It has been reported that the bankruptcy filing for Chrysler could come as early as next week. The filing would allow for Fiat to complete its alliance with Chrysler whilst it was under the bankruptcy protection.
Meanwhile, Chrysler’s lenders are negotiating with the government to reduce the manufacturer’s debt. Yesterday, the Treasury offered lenders about 22 cents in the dollar per share (for a total of $1.5 billion of the almost $7 billion in outstanding debt), as well as 5 per cent of a restructured Chrysler. Lenders are expected to make a counter offer tomorrow.
Fiat CEO Sergio Marchionne doesn’t seem detrred, saying he remains confident his company would seal the proposed deal with Chrysler by next week.
Mr Marchionne admitted, for the first time, that Fiat would consider injecting some cash into Chrysler, a move that drew skepticism from analysts concerned about Fiat’s own dwindling reserves.
CarAdvice will endeavour to keep you posted on any developments.
Print it: 
I think 22 cents in the dollar is far too big a return. Anyone who invested in the Chrysler Sebring deserves to lose everything!
@Supply and Demand
I agree! :)
Wonder where Opel comes in all this, they are now rumours of Fiat bidding for Opel.
Dont underestimate FIAT and their mastermind CEO Sergio Marchionne who was able to untangle themselves from the GM alliance just a few years ago. GM had their backs to the wall and were bent over a barrel and paid FIAT over 1.7 Billion in compensation….
Fiat will come out in a winning position with Chrysler and access rear wheel drive platforms which will spawn the revival of rear wheel drive Alfa Romeos
Italians are winners, Americans are always faking it.
please,
like fiat will learn anything from crysler.and opel doesn’t need the oil leaks.
The US & Canadian governments have guaranteed the warranty for all Chrysler cars.
How does this effect a Chrysler purchased in Australia??
Has anyone seen any evidence that the Australian government has done the same?