harb
04-30-2009, 02:03 PM
Chrysler bankruptcy deal revealed
US carmaker Chrysler will file for Chapter 11 bankruptcy protection immediately and has formed an alliance with Fiat, President Obama has said.
Chapter 11 protects firms from their creditors, allowing them to rearrange their finances while still trading.
Some Chrysler dealerships will close over time but no jobs will be lost in the short term, President Obama said.
The move came after talks had broken down with Chrysler's lenders late on Wednesday, the White House said.
Chrysler will receive a further $8bn (£5.4bn) in government loans, up from the $6bn the Treasury had promised it if it had successfully restructured the business by midnight.
The White House described the move as a "surgical short bankruptcy" which should last between 30 and 60 days.
President Obama said the "necessary steps" had been taken to give Chrysler "a new lease of life".
He added that he had "every hope" that Chrysler will become "stronger and more competitive".
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Full story @ http://news.bbc.co.uk/1/hi/business/8027109.stm
US carmaker Chrysler will file for Chapter 11 bankruptcy protection immediately and has formed an alliance with Fiat, President Obama has said.
Chapter 11 protects firms from their creditors, allowing them to rearrange their finances while still trading.
Some Chrysler dealerships will close over time but no jobs will be lost in the short term, President Obama said.
The move came after talks had broken down with Chrysler's lenders late on Wednesday, the White House said.
Chrysler will receive a further $8bn (£5.4bn) in government loans, up from the $6bn the Treasury had promised it if it had successfully restructured the business by midnight.
The White House described the move as a "surgical short bankruptcy" which should last between 30 and 60 days.
President Obama said the "necessary steps" had been taken to give Chrysler "a new lease of life".
He added that he had "every hope" that Chrysler will become "stronger and more competitive".
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Full story @ http://news.bbc.co.uk/1/hi/business/8027109.stm