Chrysler’s future seemed even more uncertain Thursday morning, as the White House announced the struggling automaker would file bankruptcy later in the day. At the same time, several media outlets reported a deal with Fiat would stave off Chapter 11 reorganization protection.
President Obama was expected to address the situation at noon Thursday eastern time.
Last-minute efforts by the Treasury Department to win over Chrysler debtholders failed Wednesday night, the New York Times reported. Barring a last-minute agreement, Chrysler was expected to seek Chapter 11 protection, most likely in New York.
The automaker, which is in talks with the Italian automaker Fiat, would file for bankruptcy first. It subsequently would present an agreement with Fiat to the court for approval, possibly on Monday, the Times reported.