U.S. Is Said to Push Chrysler to Prepare for Chapter 11

The Treasury Department is directing Chrysler to prepare a Chapter 11 bankruptcy filing that could come as soon as next week, people with direct knowledge of the action said Thursday.

The Treasury has an agreement in principle with the United Automobile Workers union, whose members’ pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing, said these people, who asked for anonymity because they were not authorized to discuss the case.

AHHHHH, it allows pensions and health benefits to remain instead of being abandoned so it can move on.

Chrysler will complete it's merger with Fiat under bankruptcy.

They owe 6.9 billion and the gov is offering about 1.5 billion to debt holders.
N.Y. Times


How long before G.M. joins them???


[edit on 4/23/2009 by mrmonsoon]