Chrysler will seek bankruptcy almost immediately, according to a crop of wire reports citing a senior administration official (which is Washington speak for “a press conference was held, but we aren’t allowed to name the spokesman”).
The Chapter 11 filing will happen in New York court, and the government will provide up to $3.5bn in debtor finance, and up to $4.7bn when the alliance with Fiat closes. Restructuring is expected to be complete within 30 to 60 days, the reports said.
Related links:
Chrysler creditors reject new offer – FT
Chrysler rescue – Lex