Overnight talks with debtors collapse, making bankruptcy protection move inevitable
30 April 2009

Early morning reports in America suggest Chrysler will now definitely file for Chapter 11 bankruptcy protection later today.

A pair of Obama administration officials told The Associated Press news agency that last-minute talks with Chrysler's debtors collapsed over night.

However, the move into bankruptcy protection could dramatically hasten Chrysler's union with Fiat - with some analysts even speculating that a deal could be concluded within 24 hours.

"Their [debtors'] failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders, nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward," said the Obama administration spokesman.

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