WKYT | Lexington, Kentucky | News

Chrysler's Fate Rests with Debtors as Clock Ticks

NEW YORK (AP) - A published report says the Treasury Department
is preparing a Chapter 11 bankruptcy filing for Chrysler.
Pensions and retiree health care benefits of the United Auto
Workers union would be protected, according to the report in the
New York Times.
A life outside of bankruptcy appears to hinge on whether
Chrysler and the U.S. government can get the company's lenders to
forgive a large portion of the company's debt in exchange for
stock.
The lender issue remains unresolved, according to the newspaper.
Chrysler has been living on $4 billion in government aid since
the beginning of the year. The Obama administration has offered
another $500 million in working capital to get through April 30,
when it has said it would cut off aid.


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