Chrysler, Ready for Bankruptcy
Date: Apr 23rd, 2009 8:36:39 pm - Subscribe
Mood: so-so
Chrysler has prepared documentation needed for the bankruptcy procedures in the event that negotiations for an alliance with the Fiat group fail when the deadline of April 30 imposed by the U.S. government is up.
The U.S. Government has imposed Chrysler April 30 as a deadline for reaching an agreement with Fiat.
Otherwise, the Treasury will block
the financing of the auto manufacturer, and the decision would push the company to bankruptcy.
According to sources close the discussions, Chrysler is focusing on talks with Fiat and enjoys the support of Obama administration, but also have the documents needed to apply for protection under bankruptcy the law ready, as an added measure.
The Italian Fiat group might be interested to take over the German Opel, the biggest European division of U.S. group General Motors (GM).
Concluding such a transaction would turn Fiat into a major player in the world, with an important role into the restructuring of the two U.S. auto giants that are in great difficulty.
Comments: (1)
anonymous - April 23rd, 2009 |