Chrysler, Auto Industry | featured news

The fate of Chrysler shifted from Washington to a Manhattan courtroom on Friday, as lawyers for the automaker sought a settlement with creditors.

With a bankruptcy filing by Chrysler appearing all but certain, President Obama will address the fate of the automaker at noon.

Under bankruptcy plan government is preparing, Fiat management would take control, sources say.

The Treasury Department has sweetened its offer to holders of Chrysler’s secured debt in a last-minute attempt to keep the iconic American automaker out of bankruptcy court, according to people briefed on the matter.

Chrysler’s unsecured creditors have reached a preliminary deal with the Treasury Department, two people briefed on the matter said on Tuesday.

Union concessions moves the deal between the U.S. and Italian automakers closer to reality.

U.S. automaker Chrysler LLC showed signs of progress with its unionized workers in its battle to stay alive on Sunday with just days left to complete deals to slash labor and debt costs or face bankruptcy.

Despite plummeting sales, its per-share loss is about half of what analysts had predicted. Also today, GM borrows more federal funds, and reports point to Chrysler bankruptcy.

The Obama administration remains focused on bringing Chrysler and Fiat into a working partnership, a U.S. official said on Thursday, dismissing a news report that the U.S. car-maker faced imminent bankruptcy.

General Motors Corp. could get as much as $5 billion more in federal loans, while Chrysler LLC could get $500 million as they race against government-imposed deadlines to restructure, according to a government report filed Tuesday.