Fiat-Chrysler Are One, Chapter 11 Will Follow

The struggle of American manufacturer Chrysler seems to be over, as Corriere della Sera announced it has reached an agreement with Fiat regarding their future together. Although yet unconfirmed, the online edition of the Italian magazine says the official announcement will be made sometimes in the evening, during a press conference to be held by the President of the United States, Barack Obama.

As we previously reported, an alliance with Chrysler will not stop Chrysler from entering Chapter 11 protection. The company is yet to reach an agreement with all of its lenders, a road block which can push it into bankruptcy by the end of the day. According to bloomberg.com, Chrysler will enter bankruptcy after all, but details are yet to surface. The source claims bankruptcy was confirmed by a White House official.

The Chrysler story has unfolded throughout the day, as developments come by the hour. As we told you, a few of Chrysler's creditors are not happy with the cash-for-debt swap proposed by the manufacturer and the US Treasury department, which stated they will receive $2 billion in cash to settle a $6.9 million debt.

The news has made many of the US officials get behind Chrysler and call out to the lenders to take the deal. "On behalf of Michigan, on behalf of the thousands of people who will be affected if this company is forced into bankruptcy, I am publicly asking these hedge funds to not be greedy but to do what the banks have done and what everyone else around the table has done - take the concessions," Jennifer Granholm, Michigan Governor pleaded earlier today.


Update: Chrysler files for bankruptcy